Vendor rationalisation: cost, resilience and lock-in
How SMEs can reduce supplier complexity without creating a new concentration or transition risk.
Why rationalisation cases fail
Savings are often presented without transition cost, operational dependency, contract position or exit risk. Consolidating suppliers can simplify operations while increasing concentration exposure.
Inventory services, data, integrations, identities, support paths and contractual commitments before deciding what to remove.
Compare the decision paths
Evaluate retain and optimise, phased consolidation, competitive replacement and strategic multi-vendor paths. Compare each against net cost, resilience, control, capacity and reversibility.
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Make the contract operational
Translate the decision into service measures, escalation, evidence, security obligations, transition assistance and exit rights. Commercial leverage is strongest before signature.
Sources and further reading
This article provides general information and decision support. It is not legal advice, audit assurance, certification advice or a guarantee of outcome.
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