Global IT Services and Consulting Company
The Challenge
CoCo was engaged to accelerate an ambitious cost reduction program.
The key challenges for the client included:
- Rising operating costs leading to significant financial challenges
- Change fatigue, creating resistance towards change
- Data quality and integrity issues, leading to poor decisions and vendor management
- Fragmented initiatives, with multiple overlapping efforts that lacked coordination or strategic alignment
- Insufficient procurement expertise and experience within the team
- Lack of strategic planning and procurement involvement in key vendor initiatives
The Approach
CoCo structured a program over a six-month period, with our specialists engaged across the spend categories of Contingent Labour and Technology.
- Program Governance: Structured governance with MI and reporting of initiatives via a weekly steerco
- Investigation and Data Gathering: Review of supplier contracts, spend data, invoices and related documentation
- Deep Dive: Holistic review of all upcoming renewals and contracts, developed and qualified a targeted initiative list including renewals, renegotiations and optimisation opportunities
Delivery:
- Contingent Labour: Optimisation of labour and professional services contracts, including adherence to rebates and discounts, RFPs and process mapping
- Technology: Delivering key renewals in software and hardware, hardware, maintenance and tail spend RFP, cloud insights and recommendations, OEM benchmarking and rebate optimisation
The Outcomes
CoCo successfully completed all key deliverables while building strong relationships with client colleagues.
- Client ROI: Return on Investment of 7:1 delivered
- Accelerated deliverables: Completed six weeks ahead of schedule
- Significant cost opportunities identified: Savings pipeline of $30mn+ identified
- Strategic market engagement: Launched global RPFs to drive competitive advantage
- Contract and Commercial intelligence: Enabled deeper understanding of contract provisions around rebates, discounts and renewal terms
- Cross functional teams: Strengthened collaboration between procurement and key business units
- Future ready strategies: Delivered playbooks for upcoming renewals