Salesforce Success Story: Driving Cost Optimization for a Luxury Consumer Goods Company
I've fixed the spacing and formatted the content using clear headings for better structure and readability.
$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.
.avif)
Contract Consolidation Post-Merger
Client Profile
A national healthcare provider with 10+ facilities undergoing post-merger integration of systems and vendor contracts.
Challenge
Multiple overlapping software and infrastructure contracts (some with auto-renewal clauses and duplicative pricing) created an estimated $5M in redundant spend and significant compliance risk across entities.
TNG Solution
- Conducted a full post-merger contract risk assessment.
- Identified conflicting licensing terms and misaligned SLAs across vendors.
- Renegotiated bundled agreements, centralized governance rights, and aligned pricing to true usage.
Outcome
Eliminated $5.3M in redundant costs and created a centralized contract framework that mitigated legal exposure while ensuring scalability for future growth.
SaaS Contract Optimization
Client Profile
A Fortune 100 big-box retailer implementing a multi-year rollout of a cloud-based workforce management platform across 1,200 locations.
Challenge
Vendor’s original SaaS contract included non-negotiable annual price escalators, unscalable support fees, and unrestricted termination clauses, leading to a potential $14M overcommitment.
TNG Solution
- Conducted a clause-by-clause risk audit.
- Introduced performance-based renewal language, capped escalators, and tiered user thresholds.
Outcome
Negotiated total contract value down by $6.8M, implemented enforceable performance guarantees, and secured rights to re-negotiate upon key business changes.
.avif)
SAP Indirect Access & Audit Exposure
Client Profile
A publicly traded global logistics company with over 30,000 employees and a complex SAP landscape.
Challenge
SAP alleged the client owed $9.6M in retroactive fees due to indirect access violations following an internal audit. The client had signed an outdated license agreement that left them fully exposed.
TNG Solution
- Performed a forensic risk analysis of the original SAP contract and audit report.
- Identified outdated metrics, ambiguous user definitions, and license overlap.
- Negotiated a new licensing model that eliminated indirect access exposure and established a future-proof digital access clause.
Outcome
Reduced SAP’s claim from $9.6M to $0 and negotiated a forward licensing strategy that saved the client $7.2M over five years.
Start with a CIA.
That’s a Client Intake Assessment.
Upload your contract data or schedule a discovery call. If we can’t identify at least a 10%+ from a TNG Right Pricing™ opportunity, we won’t take your money (but we will offer you some free advice!)
