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Success Story - "Security Services"

Company Description

Publicly Traded Global provider of ingredients and solutions to the food, beverage and other industries

Company Situation and Problem

The Client had moved to a large Global Security Services supplier and negotiated rates during the depths of the recent recession. The majority of the Security Guards had been retained by the new Security firm.

  • Based upon discussions with the supplier, the Client anticipated rate increases for the future renewal period.
  • The Client felt the Supplier’s pricing was reasonably competitive and did not identify any services issues.
  • The client preferred the retention of the majority of the personnel and had concerns regarding transition cost and risks if a new supplier were to be recommended.

Paladin Actions & Recommendations

Paladin worked closely with the Client, compiled historical costs and analyzed the current services.

  • Paladin identified some service levels which needed improvement and overtime practices that needed strengthening.
  • Paladin then prepared a complete Security Services Request for Proposal and engaged the top service suppliers in the potential bid process.

Client Results

With strong Paladin competitive negotiations, the incumbent was awarded a 3 year extension.

  • Not only did the Client not incur an increase in the new period, the supplier reduced their markup 3 percentage points.
  • In addition, since the incumbent won the extension, potential switching cost/risks were eliminated and the Client was able to work with the existing supplier on services improvement and strengthening overtime practices.

A competitive bidding process resulted in lower costs and improved services delivered by the incumbent supplier.