$53M in Savings for Biopharma Company

$53M in IT Savings for a ​biopharmaceutical company

One of our recent clients was a biopharmaceutical company with $5B+ in annual revenue. The client had a large software contract with one of the industry leading providers. The original agreement was charged on a “case volume” basis which was leading to rapid growth in costs beyond our client's budget.  

‍We helped the client renegotiate the agreement with their software vendor by:

  • Changing the cost lever from which the client was billed from “case volume” to “seat-based licenses”
  • Setting rates on a “should cost” basis due to The Negotiator Guru’s extensive experience in the IT Sourcing industry
    • We decided that 35% was an acceptable margin for a software provider to be charging the client. Previously, the software vendor had been charging a 200% margin.
  • Handling the entire renegotiation process

​The end result:    

$52.3M+ in savings over 5 years

See More Case Studies

From Phoenix to Tokyo, we turn impossible vendor demands into client victories.

$450,000 in Savings for Mid-Market Manufacturing Company

How we reduced carrier shipping expenses by $450,000

Our client was a mid-market manufacturing company with approximately $80M in annual revenue  Our focus for savings was in reducing the costs of their carrier shipping services.

We created these savings in a 3 ways:

  1. We saved them 20% on their LTL and FTL pricing by consolidating all of their existing contracts together from multiple locations into a single contract with a lower rate. We did this for FedEx, UPS and USPS

  2. We analyzed their shipping needs optimized their shipping channels (FTL, LTL, Parcel, Train)
    • Significant cost savings were generated by moving lower priority packages from shipping with UPS to USPS
    • Select shipments were moved from road to train which is becoming an increasingly cost effective way to ship packages

  3. We identified that slowing shipping down by 1 day would not impact the customer's business operations, but would reduce the overall shipping expenses by 10%

In total this created a $450,000 annual cost reduction for the company's carrier shipping contracts.

$13M in Savings for Financial Services Firm

How we negotiated $13M in savings for a financial services firm

Reducing Salesforce contract from $25M to $12M

‍One of our recent clients was a financial services company with $15B+ in annual revenue and 5,000+ employees.

‍We worked with the client to:

  • Identify current state of contracts across the globe
  • Identify key stakeholders within IT and business units that utilized similar software packages
  • Coordinate global business units and stakeholder meetings to discuss opportunity, gather feedback and drive results
  • Utilize proprietary tools, templates and techniques to assign global roles & responsibilities, action items and negotiation tactics in interest of speaking from one voice

The results:

  • $13M+ in client savings
  • Negotiated client’s agreement with Salesforce down from $25 million to $12 Million for a 3-year contract
  • We also identified additional cost-savings opportunities that benefited multiple business units across their organization
ERP & E-Commerce Implementation

Value Creation ERP and E-Commerce Implementation

ERP & E-Commerce Engagement Overview

One of our clients recently engaged us to source, negotiate, and contract with a 1) Enterprise Resource Planning (ERP) and 2) E-Commerce software platform.

‍Key Activities

  • Identified current state contracts and client-based obligations
  • Developed a risk profile of current state contract language against enterprise project plan timelines and dependencies
  • Utilized our proprietary decision-matrix framework to drive C-Level decision making
  • Advised client on key dependencies to consider throughout the project
  • Directly provided hands-on support/representation throughout the entire negotiation and contracting process

The Results (not comprehensive)

  • $300K+ Cost Savings
  • $275K+ Cost Avoidance
    • Milestone billing (vs. T&M)
    • Delayed subscription period start, etc.
  • Significant contractual risk mitigation
    • Intellectual Property Rights
    • Eliminated Scope Ambiguity
    • Partner vs. Client Responsibilities
    • Joint Collaboration Agreements, etc.
  • A really happy client

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