Situation: With over 2,300 large-box locations across the domestic U.S. and internationally, this customer is the largest office supply store operator in North America. They were nearing the end of their contracts with several carriers in the United States, while also nearing mid-term and expiration of several carrier contracts in Canada and Europe. There was a definitive expectation for cost reductions in the three major geographic areas focusing on Wireline (Data and Voice) services.
Additionally, the Senior Management wanted an approach that would align all contracts coterminously and consolidate carriers where possible. There was also a strong desire internally to integrate the United States, Canadian and European IT staffs to work more cohesively.
Negotiation: A multiple-carrier, competitive RFP for Wireline services was conducted with the objective to extract leading-edge contracts from all carriers with best-in-class pricing, terms and conditions, while also consolidating the carrier-base to a minimum number without decline in excellent service standards..
The success of these negotiations was realized due to G2’s comprehensive strategy of negotiating multiple-carrier RFP’s throughout differing geographic regions of the world, while maintaining a focus on integration and dialogue with the client’s IT personnel in the United States, Canada and Europe.
During the negotiations there were seven United States-based carriers, four Canadian-based carriers, and eleven European-based carriers participating in the RFP initiative.
Result: G2 recommended, with the customer’s concurrence, to maintain two prominent United States carriers (with one niche provider); consolidating two major Canadian carriers such that one was prominent and the other a minor incumbent; and, consolidating two major European carriers to a single carrier (with several one-off niche providers). New 3-Year term coterminous contracts were negotiated with all carriers that were awarded business. G2’s expert strategy generated $21.4 million in term savings with best-in-class terms and conditions. G2’s management of all carriers and Senior customer staff during the RFP process was integral to the success and finalization of the negotiation efforts.
The overall savings obtained through negotiations resulted in a bottom line savings that more than doubled the customer’s goal of 10% reductions.
As it relates to carrier agreements, this customer’s Global IT staff is now more of a cohesive unit able to move quickly and efficiently when supporting their 90,000 employees.
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