Why Vendor Consolidation Is Important For Your Business

All businesses share at least two objectives to be successful:

1. Lower costs as much as possible, and
2. Maximize operational efficiency.

There are a number of ways to achieve these goals, whether it be through strategic hiring, investing in new machinery, adjusting operational methods, or vendor consolidation in Toronto.

What Is Vendor Consolidation?

The concept behind vendor consolidation is to limit the number of external vendors that companies work with. Instead of spending small budgets across a number of boutique vendors with specialized services, businesses can instead spend the majority of their budgets with fewer, or ideally one dedicated full service vendor.

Vendor consolidation is a supply chain management strategy that many businesses have opted to integrate into their operations, and it’s for good reason. There are multiple benefits to vendor consolidation that can positively impact your business.

The Top 5 Benefits of Vendor Consolidation

Many businesses currently use a variety of solutions and suppliers for printing and imaging needs, including toner replacement, document management solutions, print security auditing and more. Although this method of mixing vendors may have worked historically, it’s not necessarily the best approach to managing operational processes. Finding one reliable organization that can manage all types of print services can serve to be beneficial in a number of ways!

Lower Costs

Switching processes through vendor consolidation can save costs in a number of ways. First, it may improve purchasing costs. By using fewer suppliers and allocating more services to one vender, organizations will instantly receive higher purchasing power. After all, by trusting one vendor with a higher budget, they may be more likely to give you a sizeable discount to prove that you’re a valued business partner.

Another cost saving from vendor consolidation in Toronto is reduced process costs. By using one supplier instead of multiple, companies may experience reduced transaction costs. Some transactional costs that can really accumulate over time include internal system set-ups, document management solutions, shipping and more.

Time Savings

One of the biggest benefits of allocating the majority of your process needs to one vendor is time savings. Working directly with one vendor can save hours of vendor communication and management, especially if you were previously working with a large variety of vendors. For example, instead of setting up monthly meetings across 10 vendors, your business will only have to check in with one. Instead of spending working hours developing invoices, contracts, and payment processes, staff members will have free time to reinvest in tasks that can help the business expand.

Furthermore, should any issues arise, you won’t have to spend time reiterating any points as your vendor will have a broad perspective of your business.

Improved Relationships

Using vendor consolidation in Toronto for your business can create strong, long-term relationships. Vendors are much more likely to nurture their relationship with you through vendor consolidation as they’ll see you as a high-volume buyer and therefore an ideal client. If you are considered a high value client, you vendor will naturally want to provide the best service available in order to retain your business.

Reduced Risk

Limiting vendors significantly reduces risk as there are less avenues available for security breaches. With fewer suppliers, your company can dedicate time to better manage one vendor rather than multiple vendors, and secure any risks throughout the supply chain. Multiple solutions usually need strange fixes and “patching” to create steady operations, but consolidated solutions are designed to securely cover all risks.

Simplified processes

Using consolidated solutions can streamline and therefore simplify current businesses, reducing the number of steps involved in processes and ultimately freeing up time. With efficient, minimal step processes, staff training requirements may be reduced. With simplified processes, all staff and vendors can be on the same page, quickly transfer information, and solve problems effectively.

Here at Integr8 Document Solutions Canada, we understand the importance of minimizing costs and making daily operations simple but effective. Many businesses use a mix of different imaging and printing solutions, housed in the same space. Although these combined systems may work, they may not optimize efficiency as well as vendor consolidation with one managed print services partner can!

Integr8 will work to take any bumps out of your workflow, and create new, streamlined processes instead. Our mission is to free your organization’s human resources while reducing carbon footprints, cost, and downtime.

Contact us today if you’d like to elevate your business’ printing and imaging needs.