Is stability costing you more than you realise?

Long-standing relationships with enterprise software vendors can feel like a sign of strategic success. Contracts are renewed without fuss, systems run smoothly, and stakeholders are familiar with the tools they use every day. On the surface, it’s stability.

But stability can hide inefficiencies — and in the world of IT procurement, inefficiencies quietly drain budgets and limit innovation. The reality is that comfort with a vendor can tip into commercial stagnation, where contracts roll over with minimal challenge and real value is left on the table.

The Hidden Dynamics Behind Inertia

Many procurement teams know they could test the market more often, yet hesitate. Common reasons include:

• Complexity – Core platforms are deeply embedded in processes and architecture.
• Sunk Costs – Years of investment in licences, integrations, and expertise.
• Time – Large-scale change takes years, not months.
• Cultural Resistance – Teams have invested in mastering one vendor’s ecosystem and fear disruption.

These barriers are real — but they’re also the very reason incumbents can become over-comfortable.

When Competition Changes the Conversation

In one case, a major organisation was preparing to renegotiate a large application support contract. The initial plan was a familiar one-to-one discussion with incumbents. But procurement introduced competitive bidding instead.

The result? Significant cost reductions and improved commercial terms. More importantly, it demonstrated to internal stakeholders that introducing competition doesn’t have to be disruptive – it can be transformative.

Value Beyond Vendor Changes

In another scenario, procurement explored alternatives to a long-standing ERP provider two years before renewal. No vendor switch followed, but the exercise uncovered critical dependencies, highlighted the cost of technical debt, and secured budget to modernise.

This is the key point:

Competitive exploration isn’t only about replacing suppliers — it’s about gathering intelligence, creating leverage, and driving investment in areas that matter.

Four Steps to Move from Comfortable to Competitive

1. Challenge the Status Quo – Regularly test whether existing arrangements still deliver best value.
2. Leverage Competitive Dynamics – Use competitors’ motivation to win your business to negotiate better terms.
3. Prepare for Audits Early – Compliance readiness strengthens your position in any negotiation.
4. Start Small – Pilot competitive sourcing in a single area to demonstrate value and build support.

Overcoming Internal Resistance

Shifting from comfort to competition often means changing mindsets:

• Share success stories from other sourcing projects.
• Position competitive exercises as risk-managed intelligence gathering.
• Engage operational owners early to address concerns and align goals.

A Call to Action

Take one step this month:

• Meet with the operational owner of your ERP or another core system.
• Ask: When was our last independent assessment? Are we sure we’re getting maximum value from this contract?

You may find that the safest-looking arrangements are where the biggest opportunities lie.

In procurement, comfort can be costly. Moving from comfortable to competitive doesn’t require wholesale change overnight — it starts with one decision to challenge, compare, and question. The payoff can be more than savings; it can be the spark that drives strategic improvement across your organisation.

Rob Gardner

Rob Gardner brings over 15 years of procurement and leadership experience across industries like Insurance, Oil and Gas, Healthcare, Retail, and FMCG. He specializes in restructuring procurement departments, managing indirect spend, and renegotiating key contracts. Rob excels in leading interdisciplinary teams, fostering supplier relationships, and driving strategic results.