Supplier Consolidation Screening Starter Kit

Consolidation works when you do it deliberately.

This starter kit helps you answer:

• where supplier sprawl exists
• which categories are safe to consolidate
• which categories should stay multi-supplier for resilience

What you will produce

1. Category supplier map
2. Fragmentation signal score
3. Consolidation shortlist with reasons
4. Risk notes that prevent over-consolidation

Step-by-step implementation

Step 1: Build a supplier map for the category

You need a list that is complete enough to be useful, not perfect.

Step 2: Score fragmentation signals

Fragmentation signals usually include:

• many suppliers for the same scope
• wide rate variance
• inconsistent terms
• high volume of spot buys

Step 3: Identify a consolidation target

Good consolidation targets:

• high spend
• repeatable scope
• measurable service levels
• low switching risk

Step 4: Document where not to consolidate

Some categories must stay multi-supplier:

• single points of failure are unacceptable
• geographic constraints exist
• specialized capability is required

Templates

A) Category supplier map (copy and paste)

Copyable template (TEXT)
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Category Supplier Map

Category:
Owner:
Time period covered:

| Supplier | Scope provided | Locations or teams | Annual spend | Rate type | Contracted | Notes |
| -------- | -------------- | ----------------- | -----------: | -------- | ---------- | ----- |

B) Fragmentation signals score (copy and paste)

Copyable template (TEXT)
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Fragmentation Signals Score

Category:
Date:

Signals:
- More than ____ suppliers for the same scope: [yes/no]
- Rate variance above ____ percent across suppliers: [yes/no]
- Contract coverage below ____ percent: [yes/no]
- Spot buys or emergency purchases frequent: [yes/no]
- Invoice errors or disputes common: [yes/no]

Decision:
- Good consolidation candidate
- Needs more data first
- Do not consolidate

C) Consolidation shortlist (copy and paste)

Copyable template (TEXT)
Copy
Consolidation Shortlist

| Category | Why consolidate | Estimated savings lever | Primary risk | Mitigation |
| -------- | --------------- | ---------------------- | ------------ | ---------- |

Common failure modes

• consolidating categories with high switching risk
• ignoring service levels and only chasing price
• consolidating without a compliance plan, so spend fragments again