Spoiler alert: Yes, car dealerships have vendors – usually a lot of them. From uniforms and cleaning supplies to CRM systems, service bay tools and office essentials, dealerships work with dozens of vendors across multiple departments. But having vendors isn’t the issue—managing them effectively is.
In fact, vendor sprawl is one of the most overlooked drains on dealership resources.
How Many Vendors Does a Typical Dealership Work With?
The average dealership engages with 20 to 50 different vendors—sometimes more. These may include suppliers for:
- Office supplies
- Ink and toner for printing
- Shop equipment and repair tools
- Uniforms
- Floor mats
- Detailing products
- Promotional items
- Marketing and advertising platforms
- CRM and DMS software
- Facility maintenance and cleaning
- Telecommunications and the internet
Each vendor brings its own pricing structure, contracts, reps, billing cycle and point of contact. Multiply that across multiple managers and departments, and you’ve got a lot of moving parts – plus, a lot of time spent putting out fires.
The Hidden Cost of Managing Too Many Vendors
Vendor relationships are meant to streamline operations—but when dealerships juggle too many vendors, they end up spending more time:
- Negotiating rates that change every quarter
- Dealing with supply chain delays or service issues
- Managing inconsistent billing and paperwork
- Resolving errors across multiple points of contact
This leaves your managers distracted from what they do best: running a profitable store, supporting their teams and serving customers.
Why Optimizing Vendor Relationships is Critical
You can’t eliminate vendors entirely—but you can consolidate and streamline how you work with them. By optimizing your vendor relationships, your dealership can save money through group-negotiated pricing while also saving time by reducing the back-and-forth associated with managing multiple suppliers. This approach brings greater consistency to billing, service and delivery, providing clearer visibility into your true spend across categories.
In other words: fewer headaches and better results.
The Value of Working With a Group Purchasing Organization on Vendor Management
One of the best ways to simplify your vendor relationships is to work with a Group Purchasing Organization (GPO). GPOs combine the purchasing power of hundreds of dealerships to negotiate better pricing and terms on the supplies and services you already use.
Working with a GPO means you still have access to top-tier brands and suppliers—but with:
- Lower prices
- Centralized account support
- Fewer invoices
- Trusted vendor performance
And if something goes wrong? You have one throat to choke rather than five. That peace of mind is priceless.
Partner with FLADCO to Optimize Vendor Management
So, do car dealerships have vendors? Without a doubt. But if you’re juggling dozens of them manually, you’re likely spending more time managing paperwork, fixing issues and negotiating contracts than focusing on sales and service.
That’s where FLADCO comes in.
As the largest GPO for car dealerships in the country, FLADCO simplifies cost savings and vendor management. Our vendor consolidation model streamlines your supply chain, reduces costs through group purchasing, and provides a single, reliable point of contact, eliminating the need to chase down multiple reps or reconcile dozens of invoices.
Even better, FLADCO is built to be easy.
Our intuitive website allows you to purchase supplies directly, explore vetted service programs, and access transparent, pre-negotiated pricing that thousands of like-kind dealers already trust. No surprises, no complicated onboarding – just a proven, dealer-tested platform designed to save you time, money, and frustration.
Ready to see how vendor consolidation works in action? Sign up for free today to start taking advantage of our best available pricing on goods and services for your dealership(s).
Please note that this blog was originally published on Dealer One Stop’s website on Oct. 15, 2025. Read the post here.
