Client Profiles - Manufacturing
Telwares Applied Its Negotiation Expertise To Help A Fortune 500 Food Products Company Cut Costs Significantly While Boosting Contract Flexibility And Vendor Accountability.CHALLENGE:
A Fortune 500 food manufacturer was utilizing two vendors for its extensive network. The company was exceeding its contractual revenue commitments, but was not convinced it was receiving the rates and terms it deserved. Also, due to rapid growth, the company had accumulated non-coterminous contracts that limited its ability to achieve its network objectives.
Meanwhile, both of the companys incumbent carriers had clearly become uncompetitive in the market. The food manufacturer looked to Telwares for guidance on how to rectify the situation.
SOLUTION:
Telwares pursued several fronts. An RFP was issued, mid-term negotiations were conducted with the carriers, and the company was positioned to transition portions of its network to a non-incumbent carrier.
Key strategy recommendations:
Utilize the pending contract expiration to jumpstart the negotiation process.
Develop a detailed inventory of services used as a baseline for comparative analysis.
Use Telwares' intellectual property database to develop a demand set of requirements to focus the negotiations.
Engage multiple carriers in simultaneous negotiations along a tight but achievable timeline.
RESULT:
Telwares secured a leading edge, holistic network contract package for the company. The new agreement maximized savings across services, improved contract terms and commitment levels, and increased vendor accountability through protective contract clauses.
Specific accomplishments:
Reduced annual telecom spend by more than 33%.
Negotiated fixed rates to provide contract stability for key services.
Enhanced terms and conditions to protect the company in the event of business changes.
Improved service levels and additional contract flexibility.
Read how Telwares has helped these world class companies achieve success:
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SoftwareBankInsuranceUtilityHealth CareManufacturingHotel ChainOutsourcing