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Success Story - "Telecom Cost Reductions I"

Company Description

$1.4 Billion Electrical Wire And Cable Manufacturer

Company Situation and Problem

Multiple but low margin products; sustained sales challenges; low profitability; high and unstable material prices; high costs of production; exposure to client base; multiple telecom supplier rates no longer competitive; telecom contract language biased towards supplier; client skeptical of further telecom reductions.

Paladin Actions & Recommendations

Assisted client in the preparation of the corporate Request for Proposal with supplier recommendations. Completed detailed analysis of all ten (10) submitted supplier proposals. Developed evaluation matrix with ranking of pricing and all other critical terms and conditions. Met personally with four finalist suppliers and recommended both voice and data networking winners. Performed cost analysis of both usage along with other tax/fee savings opportunities.

Client Results

  • Leveraged incumbent data networking supplier to reduce costs by 25%, thus eliminating any network conversion costs.
  • Will implement voice solution from a technology leader thereby affording both fiber optic transport and switching at substantial cost reductions.
  • Further, client will enjoy multiple contractual concessions, both regulatory and business, heretofore never experienced.
  • Client is now positioned for the future deployment of VoIP and MPLS, thereby enabling network convergence, at many of its smaller sites not previously cost-justified.
  • Additionally, the incumbent data networking supplier will be further leveraged during 2005/06.

Significant Savings and Additional Contractual Concessions (37% Total Savings) in Tough Situation