Fast-Growing Large National Insurance Broker Cuts 21 Vendors to 4 and Captures $893K in Annual Savings

A large insurance brokerage with fragmented national telecom infrastructure engaged Telmac to consolidate vendors, reduce costs, and build a unified, optimized architecture.

CONNECTIVITY OUTCOMES
$0K
Annual Savings
21
Vendors Consolidated From 21
0%
Cost Reduction

Fortune-Listed Insurance Brokerage | Over 3,000 Employees | 21 Telecom Vendors | Over 150 Locations | Fragmented National Infrastructure

THE ENVIRONMENT

21 Vendors. No Strategy. Significant Overpayment.

A Fortune-listed insurance brokerage had accumulated 21 separate telecom vendors across its national footprint. The infrastructure had grown organically through acquisitions and decentralized procurement decisions — each location managing its own connectivity without benchmarking or coordination.

The result was significant cost exposure, operational complexity, and no unified view of what the organization was paying, who it was paying, or whether any of it reflected fair market terms.

CORE CHALLENGES

01

21-Vendor Telecom Sprawl

A fragmented vendor landscape created by years of acquisitions and decentralized procurement. No single point of accountability, no unified management, and no mechanism to apply the organization’s scale to pricing negotiations.

02

No Market Benchmarking or Pricing Visibility

Contracts had been signed independently by local teams with no benchmarking against market rates. The organization was paying whatever vendors asked with no leverage and no basis for challenge.

03

Operational Complexity Across National Footprint

Managing 21 vendor relationships required significant internal resources. Support was fragmented, escalation paths unclear, late payments occurring, and the cumulative administrative burden substantial.

THE TRANSFORMATION

From 21 Vendors to 4. From Fragmented to Unified.

A national consolidation across all locations — reducing vendor relationships from 21 to 4 while delivering $893K in annual savings and a single managed platform.

VENDOR COUNT

21 Vendors
National consolidation

From 21 to 4. Every location unified onto a single managed architecture — with the operational simplicity and vendor leverage that only comes from consolidation at scale.

ANNUAL COST

Unoptimized
Annual savings delivered

$893K in annual savings. The result of market benchmarking, consolidated purchasing power, and contract terms that vendors had never voluntarily offered to a fragmented buyer.

ARCHITECTURE

Fragmented
Single managed platform

A single platform replacing 21 disconnected relationships. Improved SLAs, defined escalation paths, and a governance model that can sustain the savings over time.

FINANCIAL OUTCOMES

What Vendor Consolidation at Scale Produces.

$ 0 K

Annual Savings

Net recurring reduction

21

Vendors Consolidated

83% reduction

0 %

Cost Reduction

Across the portfolio

0

Unified Platform

Single managed architecture

HOW TELMAC OPERATED

Telmac's Approach to National Vendor Consolidation

This engagement required Telmac to map the full vendor landscape, benchmark every contract against market, and execute a coordinated consolidation across all locations without disrupting operations.

When a national organization is buying telecom from 21 separate entities, it has no leverage. Consolidation doesn’t just reduce cost — it changes the organization’s fundamental position in the vendor relationship.

01

Audit — Full Vendor and Contract Inventory

Telmac mapped all 21 vendor relationships, inventoried every contract, and benchmarked each against current market rates — identifying the full scope of overpayment and the consolidation opportunity.

02

Consolidate — 21 Vendors to 4 Through Competitive Negotiation

Using market benchmarks and consolidated purchasing power, Telmac negotiated down to a final architecture of 4 — with improved pricing, better SLAs, and contract terms the organization had never previously achieved.

03

Govern — Unified Platform With Ongoing Management

The client then leveraged Telmac’s governance platform — a proprietary Inventory and Contract Governance platform establishing the operational infrastructure and change management to sustain the savings and prevent fragmentation from recurring over time.

OPERATOR PERSPECTIVE

What This Engagement Demonstrates.

Fragmented buyers pay fragmented prices

21 separate vendor relationships means 21 separate negotiations each without leverage. Consolidation converts scattered spend into market position. The savings come from negotiating as a unified organization.

Overpayment in fragmented telecom environments is structural, not incidental

When procurement has grown organically through acquisitions and decentralized decisions, the resulting cost exposure is the predictable outcome of a procurement model never designed for enterprise scale.

Consolidation delivers savings that persist

Unlike one-time negotiations, vendor consolidation produces structural savings. Four vendors with improved contract terms and unified management create a baseline that holds rather than recovering at the next renewal.

YOUR ENVIRONMENT. YOUR NUMBERS.

If Your Organization Has Vendor Sprawl, The Savings Opportunity Is Significant.

The Fortune-listed insurance brokerage in this case study had 21 vendors and no unified strategy. The engagement produced $893K in annual savings and a single platform. A diagnostic conversation identifies your version of this opportunity.

In Real Savings
$ 0 M+
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