The Problem with Piecemeal: Why Consolidating Vendors Can Improve Performance and Lower Costs

Vendor diversity can offer flexibility. But too much fragmentation creates friction. We often see firms juggling multiple outsourcing providers for similar or overlapping services across offices, departments, or regions. That setup may grow out of necessity, but over time, it drives up cost and undermines consistency.

Consolidation isn’t about reducing headcount or cutting corners. It’s about getting control.

Fragmentation Dilutes Control

When a firm has multiple vendors doing similar work, even if each performs adequately in isolation, the overall operation often suffers. You end up with:

• Redundant billing structures and added administrative burden

• Conflicting service models across different offices

• Inconsistent quality, compliance gaps, and limited accountability

• Weakened negotiating leverage with vendors, treating the firm as small accounts instead of one strategic client

Consolidation Creates Clarity

Consolidating vendors gives firms the opportunity to rethink not just who does the work, but how it gets done. Done right, consolidation can deliver:

• Consistent service levels and clearer process standards

• Streamlined oversight and centralized performance reporting

• Stronger pricing through bundled volume and shared infrastructure

• Fewer communication breakdowns and less finger-pointing

It also becomes much easier to benchmark, evaluate, and improve over time.

When Consolidation Makes Sense

Not every situation calls for one provider. Niche vendors or regional service models sometimes serve a purpose. But we’ve found consolidation is worth exploring when:

• Multiple vendors are providing overlapping services

• Service quality or response time varies widely between offices

• Oversight is inconsistent or strained internally

When those factors are in play, consolidation can reduce cost, improve delivery, and bring much-needed operational clarity.

Real-World Proof: Consolidation Saved Money and Tightened Controls

A large national firm came to us with three separate off-site records vendors, each operating under different terms in different offices. Retention schedules weren’t aligned, destruction timelines were inconsistent, and oversight was thin. We helped the firm consolidate to a single provider, negotiated consistent terms and SLAs, and structured the transition to avoid service disruption. The result: over 30% in cost savings, better control over records destruction, and faster vendor response times across the board.

The Mattern Perspective

Most fragmented vendor environments don’t happen by design. They evolve slowly, often without a clear strategy. At Mattern, we help firms step back, assess the full vendor picture, and make decisions based on performance, cost, and oversight. In many cases, consolidation is the simplest path to better results.

To explore how a smarter vendor model could help your firm, reach out at info@matternassoc.com.