A global industrial leader and Fortune 500 manufacturer was nearing the end of a long-term contract with a network services provider. However, stalled negotiations for the next phase put critical cost savings and service improvements at risk. Seeking our expertise, they engaged us to drive transformation, secure better contract terms, and enhance operational efficiency. Through strategic contract redesign, market insights, and commercial negotiations, we helped them achieve substantial cost reductions and successfully implement a global transformation across multiple sites and regions.
- Outcome 1: Reduced Total Contract Value (TCV) by $59 million over five years
- Outcome 2: Transformed over 300 sites across 70 countries through a global rollout
- Outcome 3: Secured $13.6 million in additional year-one savings through benchmarking and pricing model analysis
The challenge
Manufacturers are under growing pressure to streamline operations, cut costs and optimise supply chains. As digital transformation reshapes service demands, securing the right vendor agreements is critical to maintaining efficiency and financial stability. Our client, a global manufacturer, was approaching a major contract renewal with a network provider, but stalled negotiations put cost-saving targets at risk. Without intervention, they faced overspending and limited capacity to reinvest in innovation and future growth.
The client required urgent intervention to restructure its contractual agreements, achieve financial savings and maintain seamless service delivery. A stalled negotiation process posed the risk of an inefficient contract renewal, while the need to consolidate and enhance Service Level Agreements (SLAs) was critical to improving service quality. Additionally, a lack of clarity on market-competitive pricing limited their ability to negotiate better rates, and a complex vendor landscape required standardisation to drive greater operational efficiency.
The approach
To tackle these challenges, we took a structured and strategic approach to contracting and negotiation:
- Contract redesign & SLA optimisation: Simplified the contract framework by consolidating SLAs from 124 to 51, improving service management and vendor accountability
- Cost savings & commercial negotiation: Used industry benchmarks and pricing analysis to secure financial credits and drive long-term cost efficiencies
- Standardised Service Integration and Management (SIAM) based service model: Applied expert insights to implement a SIAM based approach for seamless transformation
- Deployment & compliance planning: Developed a clear blueprint to accelerate technology rollout and ensure vendors met contractual commitments
- Global rollout strategy: Designed a phased transition plan, enabling smooth implementation across multiple locations worldwide
The value delivered
Our work delivered significant commercial and operational benefits for the client, driving cost efficiencies, improving contract terms and enabling a seamless global transformation. By restructuring agreements and leveraging market insights, we secured substantial financial savings while ensuring the business could reinvest in future growth. Strengthening vendor management and streamlining service frameworks allowed for greater agility and responsiveness, reducing complexity and improving overall performance. A structured global rollout strategy ensured smooth adoption across multiple locations, while post-contract governance and performance management frameworks set the foundation for long-term success.