The short answer
Vendor consolidation works differently in each category. Staffing usually moves to a small panel of agencies under a managed program. IT hardware moves to one or two resellers with standard catalogs. MRO shifts to an integrated supplier with punchout. SaaS consolidation removes overlapping tools at renewal. Agencies move to a roster with defined specialties. Facilities services consolidate by region or bundle. Pick the model that fits the category, not a single target number.
On this page
Companies that set one supplier-reduction target across the whole business often end up cutting in the wrong places. The categories below show why a category-by-category approach works better. For the general process, see our vendor consolidation playbook. For the strategic trade-offs, see vendor consolidation benefits and risks.
1. Temporary staffing and contingent labor
Typical starting point: dozens of staffing agencies, each hired by a different hiring manager, with different markups, contracts, and timekeeping.
Common target model: a panel of three to six agencies with tiered roles. One or two primary agencies handle most volume, and specialists cover hard-to-fill skills. Many companies run the panel through a vendor management system (VMS) or a managed service provider (MSP) so requisitions, rates, and timesheets flow through one tool.
What to watch: co-employment and worker classification rules, which vary by state, and fill-rate performance. A panel that is too small leaves roles unfilled. Our VMP vs VMS decision guide explains when a VMS makes sense.
2. IT hardware and peripherals
Typical starting point: laptops, monitors, and accessories bought from several resellers, the manufacturer directly, and employees' corporate cards.
Common target model: one primary reseller and one backup, with a standard catalog of approved configurations, punchout from your procurement system, and pricing tied to manufacturer programs. Asset tagging and lifecycle services (imaging, deployment, disposal) are often bundled.
What to watch: standardizing configurations is the real savings lever. Consolidating suppliers without standardizing models leaves most of the value behind.
3. MRO supplies
Typical starting point: maintenance, repair, and operations items bought from national distributors, local shops, and online marketplaces, often by site.
Common target model: one or two national distributors for the bulk of catalog items, plus approved local suppliers for urgent and specialty needs. Punchout catalogs and vending or storeroom programs at larger sites.
What to watch: maintenance teams need speed. If the preferred channel is slower than a trip to the local supplier, buyers will route around it. Keep an approved local option for emergencies. More detail is in our indirect spend management guide.
4. SaaS and software subscriptions
Typical starting point: several tools for the same job, such as three project management apps and two e-signature platforms, many bought on cards by individual teams.
Common target model: one standard tool per function, with exceptions approved by IT. Consolidation happens at renewal, not mid-term, to avoid paying for two tools at once.
What to watch: overlapping tools are often not true duplicates. Engineering's project tool may integrate with code repositories that marketing's never will. Map actual usage before declaring a winner. Our SaaS spend management guide covers usage analysis and renewal timing.
5. Marketing and creative agencies
Typical starting point: separate agencies for branding, digital, social, events, video, and PR, sometimes several per function, hired by different marketing leaders.
Common target model: a roster with a lead agency and a small number of specialists, each with a clearly defined scope. Master services agreements with standard rate cards and SOW templates.
What to watch: creative work depends on specific people. Ask who will actually work on your account and write key personnel terms into the contract. Consolidating to one full-service agency sometimes lowers quality in specialized areas.
6. Facilities services
Typical starting point: separate janitorial, landscaping, HVAC maintenance, security, and pest control contracts at each site, often set up by local managers.
Common target model: either consolidation by service across sites (one janitorial provider for all Midwest sites) or bundling services at each site under an integrated facilities management provider. The right choice depends on how many sites you have and how spread out they are.
What to watch: national providers often subcontract in regions where they have no staff. Ask who will actually do the work at each location, and check that quality oversight covers subcontractors.
Comparing the six models
| Category | Typical target model | Main savings lever | Biggest risk |
|---|---|---|---|
| Temporary staffing | Tiered agency panel, often via VMS or MSP | Standard markups and rate cards | Unfilled roles if the panel is too small |
| IT hardware | Primary and backup reseller, standard catalog | Configuration standardization | Supply constraints on a single channel |
| MRO | National distributor plus approved local suppliers | Catalog pricing and fewer small orders | Buyers bypassing a slow channel |
| SaaS | One tool per function | Removing duplicate licenses at renewal | Losing integrations some teams rely on |
| Agencies | Lead agency plus specialists | Rate cards and scope control | Quality loss in specialist work |
| Facilities | Regional or bundled provider | Scale pricing and single oversight | Hidden subcontracting |
Picking your first category
Start where spend is fragmented, switching costs are low, and a business leader is already frustrated with the current state. That frustration becomes your sponsor. After one successful category, the next conversations get much easier because you have your own results to point to.
Key takeaways
- Each category needs its own consolidation model rather than a company-wide supplier count target.
- Standardizing what you buy often saves more than cutting supplier count alone.
- Keep an approved fast path for urgent needs, or buyers will route around preferred suppliers.
- Start with a fragmented, low-risk category that has an eager business sponsor.
Frequently asked questions
A company that uses 30 staffing agencies might move to a panel of four: two national agencies for volume and two specialists, all running through a single vendor management system with standard rates.
Map actual usage of overlapping tools, choose one standard per function with input from the teams that use them, and switch at renewal dates to avoid paying for two tools at once.
Usually to one or two national distributors for catalog items, while keeping approved local suppliers for urgent and specialty needs so maintenance teams are not slowed down.
It depends on how many sites you have and how spread out they are. Many companies bundle services at large sites and consolidate by service type across smaller sites in the same region.
Choose a category with fragmented spend, low switching costs, and a business leader who already wants change. Early success makes later categories easier.
Start with the category that pays back fastest
Tell us where your supplier sprawl is worst and we will show you what a consolidated model could look like.