Consumer Goods & Services, Technology, Wireless, Domestic (North America), International
G2 was engaged by a leading automotive manufacturer, with global facilities and worldwide sales, to provide support and expertise for RFP development, negotiation strategy and financial analysis related to a next-generation IoT / Connected Car platform that was to begin deployment in 2023. The customer was in the process of simultaneously developing its next-generation technology while also trying to understand what the U.S. wireless carriers’ current capabilities and pricing structures were that would best support its new platform. The customer had a highly capable and engaged core team comprised of dedicated IT, Procurement and Finance resources and ran their operation utilizing a robust and highly sophisticated set of corporate policies, processes, and procedures. Furthermore, the previous platform had been subject to a long-term U.S. carrier relationship that had struggled under lackluster support and had been selected for prior projects mainly due to their relationship with corporate. The three-party contract relationship, and limited understanding of the U.S. market when that contract was negotiated, had resulted in operational challenges and higher costs over an extended contract and product lifecycle. Those constraints had been removed for the next-generation platform and the North American team had been given full control of the procurement process and had already conducted an extensive RFI with the three major U.S. carriers immediately before hiring G2 to qualify potential bidders.
Despite having knowledgeable, dedicated professionals on its core team, this customer recognized the value of hiring G2 to supplement their internal resources and increase their negotiation leverage. Entering an already active negotiation, G2 had to quickly assess the situation, review significant amounts of data and material, and immediately provide strategic support and direction for the next phases of the procurement process. G2 performed the following:
- Reviewed and delivered high-level assessments of the RFI materials previously received
- Met with IT and Procurement to understand next-gen platform technology and contractual objectives and technical specifications
- Performed a gap analysis and recommended multiple pricing structure options along with additional critical content for the upcoming RFP phase of the project including financial, contractual, and technical / operational considerations
- Assisted with drafting and editing concise, effective RFP content
- Facilitated formal Q&A process following RFP release
- Reviewed initial proposals, delivered timely feedback, and crafted coaching for carriers to drive significant incremental improvements
- Created comprehensive comparative financial models for all bidders using several scenarios over the projected ten-year platform lifecycle and an estimated ten million in vehicle sales
- Reviewed final proposals, updated financial models, and provided carrier award recommendations with specific contingency conditions
Customer selected their incumbent carrier pursuant to G2’s contingency award recommendations. Final contract included significantly improved terms and conditions, additional flexibility and lower risk, higher levels of service and support, increased technical capability and lower overall term cost than the previous platform contract. Due to the quality of the project materials and expertise provided by G2 to the customer throughout the project, we were asked to help create executive summary materials for the Procurement team to use for internal presentations. Ultimately, the summary materials were so well received, G2 was invited post-project to deliver additional live executive summary presentations to customer’s business unit stakeholders and senior leadership.