Situation: This Big-Box specialty retail company hired G2 to engage over a dozen carriers across its three major business units for the entire complement of wireline and wireless telecom services. The client’s telecom infrastructure management was partially decentralized and supported operations across forty-two states. The client directed G2 to consolidate all carriers and services, maximize savings, develop specialized terms & conditions and build coterminous agreements. By the nature of the carrier liabilities and leverage, G2 conducted both incumbent-only and multiple-carrier negotiation strategies.
Negotiation: All contracts were mid-term. This engagement represented a classic example of a large, complex, multi-location, multi-carrier and multi-business unit negotiation environment. The client held its telecom contracts to a high standard, but faced the challenges of a decentralized spend represented by hundreds of invoices. Prior to commencement, G2 appropriately consolidated services and formulated inventories to supply both incumbent and non-incumbent carriers with precise statistical information to assist their Special Pricing organizations with margin analysis and validation.
Potential impact to the bottom-line was in the multi-millions of dollars. The CFO and CIO approved a negotiation strategy that balanced maximum savings and incumbent carrier retention. Also, because of seasonality, G2 was held to and successfully managed a tight timeline – without sacrificing results – to finalize the project prior to the start of their peak sales period.
Result: G2 was hired to maximize savings, not simply to manage a major sourcing exercise. Our results were substantial at 25.2% savings across the aggregate of all services and carriers. Every rate component was targeted and received reductions. The leverage G2 applied was not contingent upon a competitive environment. Rather, the carriers were held to providing the very best rates they offer to the marketplace based upon the Benchmark Intelligence G2 gathers and updates daily.
Finally, G2 consolidated the original 15 carriers to help increase efficiency and decrease the resources required for carrier management.
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