Careful, clear-eyed planning and negotiation saves a global shipping services company ~$10 million and the relationship with its service provider.
Opportunity
In the midst of a worldwide, multi-year redesign and rollout of enterprise-wide SAP functionality, the relationship between this shipping services company and its service provider had deteriorated to a point where trust was non-existent, pointed sarcasm was common and accusations of delivery failure responsibility were traded daily. On top of that, delivery dates had been missed, team morale was low, and multi-million dollar pricing adjustments were being proposed.
Imagining IT Differently
ISG reviewed the contract, interviewed company and service provider staff, developed sourcing and negotiation strategies and conducted a fast-paced negotiation.
Future Made Possible
- A new sourcing strategy was implemented, moving future planned work from the main provider to third parties, providing important leverage.
- Detailed negotiations saved our client more than $10 million in costs.
- Extensive interviews and mediation improved the relationship between client and the provider.
