Case Studies

 

$900M Financial Services Company

Situation Overview

  • Geographically diverse company, with rapid organic growth over last 5 years
  • Suppliers identified, and purchases negotiated, by the division implementing the solution.
  • Technology sourcing handled within IT organizations
  • Purchasing team focused on order fulfillment, with limited responsibility for enterprise spending

Actions & Results

  • Analyzed aggregated spending across the enterprise by supplier and solution
  • Benchmarked pricing by supplier, relative to consolidated enterprise volumes
  • Defined roadmap to transition company from tactical purchasing to strategic sourcing
  • Established enterprise agreements within IT, Telecommunications, Office Supplies, Freight, and Travel

$12M in enterprise savings, from a targeted base of $25M

$500M Technology Services Company

Situation Overview

  • Southeastern US footprint; declining margins in highly competitive environment
  • Heavy user of technology; IT represents largest direct expense
  • Technology solutions selected and negotiated by the business units, rather than IT
  • No formal purchasing organization

Actions & Results

  • Reviewed IT solutions across business units, and benchmarked pricing by supplier
  • Built a “solutions inventory” identifying products which satisfied similar user requirements
  • Renegotiated existing IT maintenance contracts
  • Worked with IT organization to identify preferred suppliers, and establish enterprise agreements with service level commitments

Reduced Budgeted IT costs by $3M, from a base of $12M

$200M Education Services Company

Situation Overview

  • Mature global franchisor, with over 240 franchise and corporate owned locations.
  • Corporate supplier agreements did not include franchises, as HQ unable to commit franchise spending volumes, or mandate franchise purchase decisions.
  • IT hardware, software and Telecommunications services handled separately at each location
  • No formal purchasing organization

Actions & Results

  • Established a franchise steering committee to define primary suppliers.
  • Negotiated system-wide enterprise IT contracts, with tiered discounts based on achieved volume.
  • Reduced IT hardware and software costs, in exchange for co-marketing at the franchise locations.

  • Benchmarked telecommunications rates based on aggregated volume, and renegotiated supplier agreements.

$3M annual savings within IT and Telecommunications expenses

$800M Consumer Services Company

Situation Overview

  • Global corporation, experiencing rapid growth through acquisition
  • Purchasing handled separately within acquired companies
  • Suppliers selected independently for internal (corporate) and external (customer) requirements

Actions & Results

  • Analyzed aggregated spending across the enterprise by supplier and solution
  • Benchmarked pricing by supplier, relative to consolidated enterprise volumes
  • Established enterprise, cost+ margin agreements
  • Audited telecommunications invoices to identify credits owed due to incorrect billing
  • Reduced costs for raw materials and general business expenses

$5M in annual savings across the Enterprise
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