Outsourcing savings in retail
Client Requirement
Even with a strong procurement function, the company did not have current and leading outsourcing expertise. They needed strategic and operational advice to ensure that the process and the negotiations were managed and concluded successfully.
OUR ROLE
We were engaged as strategic outsourcing and procurement advisors, to provide expertise and experience in the market, supplier capabilities and tactics, pricing analysis, deal shaping, key deal terms and negotiation approach. Specifically, we:
- Advised on 3 major deals, in Finance and Accounting (F&A), HR and multi-tower operational back office, over 2 years, all with US and UK client teams, and suppliers in US, UK and India
- Acted as the primary deal shaping, contract content and negotiation advisor to procurement, legal and the lead negotiators
- Worked in collaboration with ‘Big 4’ advisory firms who managed the initial requirements gathering and bidding processes, and also with external legal
- Provided expertise on suppliers’ pricing approaches, negotiation strategies, tactics and positions
- Shaped the selection criteria and evaluations, to include overall business case, robustness of solution, application of technology for sustainable process improvement and security of the relationship
Business Outcome
Three deals were successfully concluded:
- A global F&A contract in Jun 2020
- A global HR contract in August 2021
- A multi-tower US BPO back-office contract in April 2022
Multi million-dollar savings were committed by suppliers delivered through price negotiations, with the business cases exceeding 50% savings on all the deals
Completion Date: April 2022
