This document provides a checklist for consolidating vendor contracts to reduce costs. It recommends consolidating printing and software application vendors. The checklist outlines tasks like determining department requirements, creating a vendor list, evaluating overlap, conducting a cost analysis, researching "one-stop-shop" vendors, developing an RFP, negotiating pricing using purchasing power, and renegotiating contracts. Consolidating vendors can lower administrative expenses, improve negotiation leverage, and increase service levels.

1. Vendor Consolidation Checklist
Purpose
The purpose of this tool is to provide a checklist for vendor consolidations. Key areas to
consolidate vendor contracts include printing, and software applications.
Remember that your purchasing power is directly related to your annual spending, and the
amount and size of vendors who are competing to earn your business. Implementing a
strategic purchasing process will reduce administrative expenses, process, help you
negotiate the best possible pricing, and increase service levels.
Vendor Consolidation Checklist
Done Description of Task Completed
Determine Vendor/Supplier Requirements by Department Enter Date
Create a List of All Vendors/Suppliers used in last 12 months
Evaluate Overlap between Vendors to Reduce Vendor List
Identify Specialty Service Vendors – cut if possible
Conduct a Comprehensive Cost Analysis for the Vendor-type

2. Assess Purchasing Power based on Cost Analysis & Spending
Research potential “one-stop-shop” vendors who can deliver on
your Quality, Service, and Price criteria. Create Short-list
Discuss Vendor Consolidation Strategy with Vendor Short-list
Develop RFP for your Needs and invite Vendors to Compete
Evaluate Pricing, Quality, and Service-Level Agreements
Negotiate Best Possible Pricing based on Purchasing Power
Hand-off to Procurement for Contract Administration
Re-negotiate Contracts at end of term for better rates