Projects

Real procurement wins that made a difference.

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These are a few projects where we helped our clients reduce their cost for some of their software and IT services suppliers.

• Ecommerce B2B ordering platform cost reduction project for a multinational FMCG company

We helped a multinational FMCG company reduce the cost of their existing Ecommerce B2B ordering platform by 15% on a contract worth EUR 4m per year, thus saving the company EUR 1.8m over the course of the contract term of 3 years. We managed to achieve this by leveraging the potential of migrating to an alternative vendor (even though that would have been a complicated and time consuming process). We had a number of iterations with the vendor and went through various proposals from them until they proposed pricing that resulted n 15% overall cost reduction. We also introduced tiered pricing for the service where lower price applied to each tier with a higher service volume. The client was very happy with the result, in fat they were not expecting that the vendor would be willing to reduce the cost at all, as they had a contract in place and knew it would be very difficult for the FMCG to migrate to another vendor.

• Relational Database platform cost reduction project for a multinational video software solutions company

We helped a multinational video software solutions company reduce the cost of one of its existing relational database platform by USD 1m per year which resulted in USD 3m of cost savings over a 3 year contract. To do this we conducted a market benchmarking by requesting quotes from alternative vendors for a similar database with similar functionalities and capabilities. Using the quote we received from a large vendor (one of the leaders in database management solutions) together with the IT stakeholders we put together a project plan describing the migration of the current database solution to the alternative one (even though there was not a real intention to migrate). We then presented this plan to the vendor and told them that if they do not reduce the cost from the current $1.6m to $600k per year which was the license cot for the alternative solution we would be forced to migrate to the other solution in the remaining months by the end of the contract. The vendor accepted our proposal and agreed to reduce the license cost to $600k per year. Our client was impressed with the result, especially as the vendor had previously been very firm in rejecting any cost reduction requests every time such request was raised.

• Putting in place Right to Use agreements for a large divestment projects of a multinational FMCG company

We were engaged by a multinational FMCG company to help with negotiating Right to Use (RTU) agreements with its software and IT services vendors for their newly divested entity to use the contracts in place with these vendors during the TSA (transitional services agreement) period of 2 years. We achieved this negotiation with minimal cost charged by these vendors for the RTU, with 95% of the vendors not charging any additional cost, even though the the vast majority of contracts required separate licenses to be purchased by the divested entity or RTU for the divested entity to be charged additionally, thus saving substantial amount of money (potentially in the millions), while at the same time our client still being paid for providing the software and services during the TSA period. Again, the client was very pleased with the result, which apart from the obvious cost savings also ensured full business continuity and operations running smoothly without any disruptions.

These are just a few case studies/examples of projects where we helped clients achieve significant cost savings and ensure operational excellence. We have managed multiple similar projects with similar tangible results which have made a big difference to our clients' bottom line.

Please contacts us to explore your vendors' landscape and commercial set up to see how we can help you achieve similar results.