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Vendor Consolidation

Count vendors per category — consolidating 2 similar drops price 15-25%.

60 min Intermediate

Goal

Break "5 vendors for same thing" — wield buying power via fewer.

Steps

  1. 1
    Categorize all spend into 8-12 buckets.
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Expected Outcome

Immediate
You find 2-3 buckets with 4+ similar vendors.

Evidence base

School: Strategic Sourcing

Founders: Peter Kraljic · McKinsey (1983)

Kraljic (McKinsey) — HBR 1983 "Purchasing Must Become Supply Management" founded Strategic Sourcing and Kraljic Matrix.

Keywords

Frequently asked questions

How long does "Vendor Consolidation" take?
This exercise takes about 60 minutes, practiced solo in a Action format.
When will I notice the effect of "Vendor Consolidation"?
You find 2-3 buckets with 4+ similar vendors. In the short term: In 3 months, 15-25% savings in consolidated bucket.
Is "Vendor Consolidation" evidence-based?
Yes — it draws on Strategic Sourcing (Peter Kraljic, McKinsey (1983)). Kraljic (McKinsey) — HBR 1983 "Purchasing Must Become Supply Management" founded Strategic Sourcing and Kraljic Matrix.
Is "Vendor Consolidation" suitable for beginners?
Its difficulty level is: Intermediate. No external tools required — it can be practiced directly inside the app.

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