Nowadays, both for domestic and business services, we’re told to “shop around” to get the best value for money. In principle, this makes sense. But could there be benefits to keeping your utilities or services with just one company?
Consider the time it takes to manage multiple contracts, keep on top of renewal dates and fill in paperwork from multiple companies. In terms of your time and commitment, it may actually prove simpler (and even be cheaper) to consolidate all your services in one area to a single supplier.
In fairness, there is no such thing as a “one-stop shop” i.e finding a company who will be able to meet all of your needs. In addition to this, you may also come across difficulty when trying to switch from your current provider if you’re locked into a contract. However, there are some clear benefits to reducing your supplier base, as follows:
-More financial visibility
If you consolidate your supplier base, you’ll have better visibility over the billing process. This means it will be much easier to track payments going out of the business to suppliers, so any errors will be spotted more quickly.
-Easier to manage
Managing multiple contracts takes time away from the running of your setting. If you deal with fewer suppliers, there is less administration and paperwork to take care of – leaving you with more time to focus on other areas of your business.
-Improved customer support
If you move your services to a single supplier, they will deem your account to more strategic to them. There are no guarantees, but you’d hope that your provider would work harder to keep you as a customer if you have multiple products or services with them!
Having lots of different suppliers billing your account means you may unknowingly be paying for a service you no longer need. Reducing your supplier base means you’ll be able to keep better track of any payments you’re making for services which have become redundant to your business.
When it comes to reducing the number of suppliers you use, you need to determine what’s best for your business. Even if you bring your energy and gas meters into a single contract, you may find that having your insurance cover under more than one company is more financially effective. Above all, you need to find the best overall fit so that there’s a balance between the time it takes to manage your supplier base and the profitability of your business.