We've been seeing some debate lately around whether vendor consolidation actually increases risk. And we get it. If you’re consolidating on paper but still relying on subcontractors and third-party support, you’re not really simplifying anything. You’re just making it look neater on a spreadsheet.
So let’s clear the air:
- What is vendor consolidation?
- What are the advantages and drawbacks?
- And most importantly, how do you do it right?
What is vendor consolidation?
At its core, vendor consolidation means working with fewer vendors to manage a specific part of your organization to reduce complexity, increase accountability, and cut down on overlapping contracts and finger-pointing.
But here’s the real question: Why would you have four different vendors managing printers, label printers, scanners, and fax lines? They’re all part of the same I/O layer. So why manage them separately?
What good consolidation actually looks like
Done right, vendor consolidation simplifies everything:
- Increased buying power
- Lower costs by reducing overhead and fragmentation
- Better visibility
- Clearer accountability
- Faster service
- Stronger compliance
The key is knowing what you’re consolidating to, not just what you’re reducing.
When vendor consolidation backfires
Here’s where it gets risky:
- A vendor wins your contract but outsources the work
- Multiple teams show up to fix one problem
- You're left chasing accountability in a system that’s still fragmented behind the scenes.
This happens more often than you'd think. And in environments like healthcare, it can be a major liability.
The takeaway
Vendor consolidation isn’t automatically a good or bad thing. It’s a strategy. And like any strategy, its success depends on how it’s executed.
If you’re thinking about consolidating, ask:
- Will this partner take full ownership or are you still paying for layers of subcontractors?
- Will I gain visibility, or lose it?
- Is this really simpler or just looks better on paper?
At Techio, we take ownership of the I/O layer—printers, scanners, labelers, faxes, everything in between, consolidating your operations, outcomes, and risk.
That means:
- One point of contact for all support and supply needs
- No subcontracting, our team handles it
- End-to-end visibility, tracked in real time
- Baked in accountability
- Lower costs through streamlined support
Ready to consolidate the right way? Schedule a meeting with Techio.