Global Enterprise Client, Major Contract Negotiations - Case StudySeptember 4, 2013
By CBI Telecommunications, Author Larry Garver
This CBI client is a global enterprise business with approximately 30,000 employees, 52 manufacturing locations on six continents, and 50+ global brands.
Business Situation – The Problem
CBI’s Client had several contracts that were expiring for domestic Local and Long Distance services, as well as domestic and international Data MPLS network. The Client wanted the industry expertise of an independent consultant to assure that any new contracts entered into would deliver maximum quality of service at best market pricing.
Technical Situation – The Solution/Options
CBI had established our expertise with the Client as the result of delivering complete and thorough Wireline and Wireless audits, which gave CBI an understanding of the size & scope of services used by the Client. CBI’s Wireless team had already conducted a successful RFP (Request for Proposal) campaign that delivered significant savings on the Client’s Wireless expenditures. So CBI’s Wireline team was uniquely positioned to facilitate an RFP for all Wireline services. CBI worked with Client’s IT, Telecom and Legal departments to tailor our proprietary RFP document specifically to address the Client’s requirements. CBI’s audit provided an accurate inventory of lines, circuits, calling minutes of usage by call type, etc., which were incorporated into the RFP. CBI tracked and received all RFP responses, analyzed and compared/contrasted the results vendor by vendor, and provided a comprehensive report of vendor responses, including side-by-side cost comparisons with estimated monthly and annualized savings compared to current expenditures. CBI facilitated Client on-site vendor meetings for the “finalist” vendors, and provided our recommended course of action.
Solution- The Results
CBI’s nonbiased position allowed us to look objectively at various vendor solutions obtained during the RFP process, keeping the Clients best interest front-&-center at all times. By combining all services into one RFP, CBI was able to obtain the deepest discounting and lowest pricing available from vendors. CBI management of the RFP process freed the Client’s IT, Telecom and Legal staff to focus on other core business responsibilities.
Client confidently signed new 36-month term Wireline Contract which delivered a 32% cost savings along with a network back-up connectivity plan that was not previously in place.