Client Name/Size/Sector:

• Company Name Confidential
• $15+ Billion Annual Revenue
• 5K+ Employees
• Financial Services

Supplier:

• Salesforce

Engagement Type:

• Client engaged “The Negotiator Guru” (firm) to deliver IT Strategic Sourcing Advisory Services to a specific business unit.  

Problem:

• While the client had a centralized procurement department (good thing), there was very little support from the IT department. In other words, the IT department operated independently and did not trust the client’s procurement department.  
• The client did not have a centralized spend visibility tool  
• Note: The client had SAP as their primary ERP system but was not able to accurately identify spend across regions as a result of poor reporting from the tool.  
• The client’s IT spend is broken between global and regional budgets depending on the application.  

Activities:

• Identified current state contracts across the globe
• Identified both influencing and decision-making stakeholders within IT and the Business Units that utilized similar software packages.  
• Coordinated global business units and stakeholder meetings to discuss opportunity, gather feedback, and drive results.
• Utilized proprietary tools, templates, and techniques to assign global roles & responsibilities, action items, and negotiation tactics in the interest of speaking from one voice.  

Results:

• Client Savings: $13 Million
• Negotiated the agreement down from $25 Million to $12 Million for a 3-year contract.
• Even though the firm was retained to focus only on a specific business unit, we identified cost savings opportunities that benefited multiple business units across the organization.  ​

Microsoft Engagement Overview:
Fortune 50 Company  

One of our Fortune 50 clients engaged use to advise on a high-stakes negotiation with Microsoft. The client had a large contract with Microsoft which we were able to both 1) negotiate a large technology uplift while also 2) produce a $5 million in net savings.  

Key Activities

We utilized our 4-step IT Software Negotiation Process to successfully engage with the client:  

• 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)  

• $5 Million cost savings and $10.7 Million cost avoidance over contract term
• Significant technology uplift providing access to the most advanced digital capabilities
• Uniquely engaged and supported the company’s cybercrime resilience strategy

• Enabled Device Modern Management allowing for additional endpoint security
• Negotiated a client specific license structure enabling the client to be highly flexible of their utilization of the platform

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$62 Million Value Achieved: Salesforce Optimization for Luxury Consumer Goods

TNG had the privilege of partnering with a prestigious luxury consumer goods company, boasting an impressive annual revenue of over $5 billion and a workforce exceeding 10,000 employees. Our engagement focused on optimizing their existing relationship with Salesforce and negotiating the best possible deal to drive cost efficiency.

Key Activities

To achieve our client's objectives, we executed the following key activities:

1. Discovery

Working closely with the client's global stakeholder base, including Finance, IT, and C-Suite, we thoroughly identified and validated the company's intended business objectives. This collaborative process ensured that our negotiation strategy aligned precisely with the client's overarching goals.

2. Strategy

Through strong internal and external coordination, we swiftly determined a target Total Cost of Ownership (TCO) using our proprietary Right Price cost benchmarking data. This strategic approach allowed us to set realistic cost expectations and establish a solid foundation for negotiations.

3. Negotiation

Drawing on our expertise, the TNG team provided advisory support to the client's internal procurement department, guiding them through the negotiation process. We aimed to elevate the client's Salesforce contract from merely acceptable to an outstanding agreement that delivered exceptional value.

4. Contract Execution

Utilizing our Contract Risk Review and Mitigation service, we conducted a meticulous analysis of the contract, identifying material risks and commercial miscalculations. By addressing these issues, we successfully saved the client an additional $3 million, ensuring their contract was both financially advantageous and risk-mitigated.

The Remarkable Results

Our engagement produced exceptional results, delivering substantial cost savings and avoidance for the luxury consumer goods company:

1. Cost Savings

Through our efforts, the client achieved an impressive $53 million in cost savings. These significant savings provided the company with additional financial resources to invest in other strategic initiatives and drive sustained growth.

2. Cost Avoidance

Our meticulous approach and risk identification capabilities allowed us to achieve over $9 million in cost avoidance. By proactively addressing potential risks and commercial miscalculations, we protected the client from unnecessary expenses and potential disruptions.

At TNG, we are committed to driving tangible results for our clients. This success story showcases our ability to optimize existing relationships, maximize cost efficiency, and unlock substantial savings for luxury consumer goods companies. Contact us today to explore how we can help you achieve similar outcomes and elevate your Salesforce engagements to new heights.