Supplier Rationalisation. A strategic practice.

31 August 2025 · by Ole Bülow

Strategic practices

Egiss supports Supplier Rationalisation by consolidating accountability across fulfilment, lifecycle governance, and certified asset recovery. By reducing vendor complexity and aligning reporting, performance management, and demand aggregation, Egiss enables enterprises to strengthen control while lowering operational overhead.

The eight strategic practices

Global enterprises do not optimise workplace technology for one priority alone. They balance risk, cost, experience, compliance, sustainability, and operational control - often across dozens of countries.

Over decades of supporting complex international environments, we have learned that eight disciplines consistently define success. These are what we call our strategic practices.

They are not service categories. They are the principles that guide how we design programmes, structure delivery models, and advise enterprise IT leadership.

No single practice wins in isolation. The right model sits in the balance between them - shaped by your risk profile, regulatory exposure, cost structure, and transformation ambitions.

This article explores one of those eight practices: Supplier Rationalisation.


Vendor growth is rarely intentional

Over time, most global enterprises accumulate suppliers rather than design them.

A regional fulfilment partner is added to solve a local challenge.

A separate IT asset recovery vendor is appointed for compliance reasons.

A logistics provider is selected to reduce freight cost.

A specialist staging partner supports a transformation programme.

Individually, each decision makes sense.

Collectively, complexity expands.

Before long, procurement, IT, finance, and security are managing a web of vendors across regions - each with different SLAs, reporting formats, compliance standards, and contractual structures.

The assumption is diversification reduces risk.

In practice, unmanaged supplier sprawl often increases it.


The hidden cost of fragmentation

Multiple suppliers create invisible friction.

Data does not flow consistently across platforms.

Asset visibility is fragmented.

Security documentation varies.

Sustainability reporting lacks uniform methodology.

Governance becomes reactive rather than structured.

Accountability blurs.

When an issue arises - a delayed shipment, a data discrepancy, a compliance gap - responsibility often sits between vendors rather than within one.

Coordination overhead increases.

Contract management effort multiplies.

Commercial leverage weakens as spend fragments across suppliers.

Complexity rarely scales efficiently.


Rationalisation is not vendor reduction alone

Supplier Rationalisation is not simply about reducing the number of contracts.

It is about consolidating accountability.

The goal is not fewer suppliers for the sake of simplicity.

It is a structured partner ecosystem where roles are clearly defined, performance is measurable, and governance is centralised.

At Egiss, Supplier Rationalisation is one of our eight strategic practices because it strengthens every other discipline:

Security improves when handling standards are unified.

Sustainability becomes measurable when recovery processes are consolidated.

Global Standards are enforceable when provisioning flows are aligned.

Lifecycle Management becomes predictable when asset data is consistent.

Economy at scale increases when demand is aggregated.

Rationalisation creates structural clarity.


Designing a controlled partner model

Through our global lifecycle model, enterprises can consolidate fulfilment, provisioning, lifecycle governance, and certified asset recovery under a structured operating framework.

This does not eliminate specialist partners where necessary.

It creates one accountable layer responsible for orchestrating them.

Governance cadence becomes standardised - operational reviews, quarterly strategy sessions, annual planning cycles.

Reporting becomes consistent across regions.

Integrations with ITSM and ERP platforms centralise data visibility.

Commercial structures align with aggregated demand rather than local negotiation variance.

Supplier Rationalisation reduces noise in the system.

And clarity increases control.


The right balance

Over-consolidation can create dependency risk.

Under-consolidation creates coordination risk.

The right balance ensures:

Clear accountability

Transparent performance measurement

Strategic leverage at scale

Operational flexibility where required

Supplier Rationalisation must coexist with security, sustainability, and employee experience.

It is not about concentration.

It is about coherence.


Why this matters now

Global enterprises are operating under increasing cost pressure.

Procurement teams are expected to reduce spend while improving compliance.

Security teams demand tighter governance.

Sustainability teams require consistent reporting.

Finance expects predictable cost structures.

Fragmented supplier ecosystems struggle to meet all these demands simultaneously.

Rationalisation creates leverage - operationally and commercially.

Without it, complexity compounds quietly until it becomes systemic.


Closing perspective

Managing more vendors does not create more control.

Structured accountability does.

That is why Supplier Rationalisation is one of our eight strategic practices.

Because without it, global workplace delivery becomes administratively heavy, commercially diluted, and strategically fragmented.

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