Case Study - "Telecom Cost Reductions
II"
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Company Description
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$750M e-Commerce company providing e-payment,
investment management and outsourced service solutions to financial services
organizations
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Company Situation
and Problem |
New client leadership was attempting to transform
the Sourcing organization while also centralizing the procurement and
management of all indirect costs. Telecom
costs and contract management were very fragmented providing a considerable supplier
consolidation
opportunity.
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| Paladin Actions & Recommendations |
Quickly earned the confidence and respect of the
client’s sourcing and telecom teams as well as the carrier’s account
management, and rapidly gained a full understanding of telecom costs,
vulnerabilities, and savings opportunities. Completed detailed analysis of
pertinent contracts and audited invoices from 12 suppliers, then performed cost
analyses of usage and tax/fee savings opportunities. Met with 3 key suppliers and developed a strategy to elicit
significant cost reductions, then initiated incumbent supplier negotiations,
providing direct input on target voice and data service rates.
Negotiations resulted in savings from each supplier.
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| Client Results |
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Leveraged major incumbent voice and data
suppliers to write-down rates an average of 35%, including taxes and fees. |
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Negotiated improved contractual language. |
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Made staffing recommendations and assisted client
in evaluating new provisioning and billing system. |
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Assisted client in developing new SLA document
for carrier-managed VPN service. |
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The client’s rates are now leading edge without
the disruption of converting services.
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“Reduced
telecom rates an average 35% without service disruption.”
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