Luxury Consumer Goods Company

Salesforce Success Story: Driving Cost Optimization for a Luxury Consumer Goods Company

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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.

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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