Top 10 SMB Tech Issues: Vendor Overload
22 July 2025
Issue 6: Too many vendors, too little control
Lots of tools. Lots of suppliers. Not enough consistency. SMBs often end up with more platforms, services, and contracts than they can realistically manage. That leads to wasted spend, security gaps, and teams pulling in different directions.
The problem
- No centralised procurement or governance for tools and services
- Multiple vendors offering overlapping functionality
- Disjointed contracts and unclear responsibilities
- Vendor lock-in, or worse — total vendor sprawl
Instead of enabling the business, your vendor stack becomes a burden. You lose sight of who’s delivering what — and what you’re actually paying for.
The real-world impact
- Users bypass official channels and spin up their own tools (see: Top 10 SMB Tech Issues: Shadow IT and Rogue Saas)
- Security and data compliance risks multiply
- IT teams waste time managing vendors instead of improving service
- You miss renewal dates, fail to get value from subscriptions, or pay twice for the same thing
What good looks like
- Clear, centralised control of all vendors and contracts
- Defined approval process for new tools and services
- Regular reviews of vendor value, performance, and spend
- Strong internal awareness of what tools are in use — and why
Where to start
- Build a vendor inventory — including hidden tools being used across teams
- Identify overlaps, inefficiencies, and security concerns
- Standardise around a smaller number of trusted vendors
- Put a simple governance model in place — doesn’t need to be complex
The takeaway
Vendor overload isn’t just annoying — it’s a drag on efficiency, spend, and security. SMBs don’t need dozens of suppliers to get things done. A smaller, well-managed vendor base will serve you better every time.
Want some help to shape the plan? Contact me.