Situation: This multi-national Retailer made the business decision to consolidate their 23 carriers across all local, long distance (voice and data), wireless and conferencing services to streamline business while also maximizing savings. Due to the impact of declining consumer spending on the retail industry; reducing costs to increase bottom line profit was a major concern.
G2 was hired as a 3rd Party Professional Negotiator to craft an all-encompassing solution to execute this client’s directive to maximize carrier consolidation and increase profitability through the application of an aggressive negotiation strategy.
Negotiation: G2 established leverage in the form of a “threat of loss” through conducting a fully competitive multiple carriers RFP via a Bidders’ Conference. Based on the client’s current telecom infrastructure, service types, locations and technology requirements, G2 was tasked with providing the recommendation on which carriers should be included in the RFP.
At the Bidder’s Conference, G2 dictated specific price points and contractual requirements that the carriers were required to meet in order to win or retain the business. G2 interacted with each of the carrier’s Finance & Offer Development organizations to ensure that carrier submissions would satisfy our client’s needs.
G2 conducted all negotiations within a very strict 8 week timeline that the client required due to year-end financial goals.
Result: At the conclusion of negotiations, G2’s efforts yielded savings of 15.6% across all services which equated to more than $6 million in savings over the new three year contract terms. Additionally, the client’s original 23 carriers, each with numerous contracts, were consolidated to only 6 new carrier contracts.
Furthermore, G2 negotiated key terms & conditions focused on maximizing our client’s flexibility while minimizing their liabilities, making all contracts coterminous across all services allowing for an effective re-negotiation in 18-24 months.
An additional $300K of savings was also realized due to a faster project completion resulting in an earlier delivery of savings.
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