IT Software

IT Software Case Study

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.  
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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.  ​

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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