All organizations buy products and services from a variety of vendors. Unfortunately, by failing to consolidate purchases, many are overpaying the vendors and overspending on vendor management. In addition, they may be receiving a lower quality of service than they could if they concentrated their effort on fewer suppliers.
When an organization purchases the same type of service from one supplier, or purchases several services from one supplier, the price is very likely to be lower than that paid to multiple suppliers. There is a simple reason for this obvious fact; a larger deal is worth more to the vendor and, therefore, increases their willingness to apply discounts.