vendor consolidation

Vendor Consolidation: Why Construction Companies Have 3,000 Vendors They Shouldn't, and How to Fix It

The average mid-sized construction company has a vendor master file of 2,000-4,000 records, of which maybe 400 get used in any given year. The rest are duplicates, one-time purchases that shouldn't have become vendors, outdated records, and name variations of the same entity. A systematic vendor consolidation project reduces the master by 50-70%, improves spend visibility, reduces duplicate payment risk, and cleans up the data that payment automation depends on.