System Integrator Selection & Negotiation


Situation

A large consumer goods company sought to implement an ERP system as a means to reduce costs, boost operational transparency, and improve process efficiency. But, to meet its goals, the company, which had a particularly lean organizational structure, had to navigate a range of significant challenges, including:

  • Very tight timelines and limited budget
  • Few resources to commit to the vendor evaluation, selection and negotiation processes
  • Limited experience with and insight into the ERP market, including vendors’ sales practices, pricing and purchasing models, and negotiating strategies
  • Significant risk exposure in terms of future cost increases, implementation challenges and important timelines

Action

In facilitating the RFP, evaluation and selection process for a system integrator, UpperEdge leveraged considerable market and supplier intelligence.

Specifically, UpperEdge:

  • Developed a comprehensive and customized strategy and plan for the evaluation and negotiation process
  • Provided a robust RFP and prescriptive term sheets to clearly communicate the company’s needs and objectives in order to receive complete and meaningful responses
  • Provided precise business and financial recommendations and resource rate analysis based on market and supplier-specific benchmarks
  • Prepared core team members and company executives for key vendor meetings and interactions
  • Conducted detailed reviews and provided written analysis of all statements of work and contractual documentation
  • Supported and assisted the company’s legal counsel in contract drafting and negotiation

Results

The company greatly benefitted from a streamlined evaluation process and was able to meet its urgent timeline for system integrator selection, securing a highly competitive agreement within two months. Other tangible benefits included:

  • Initial savings of $800,000 – a significant multiple of the company’s investment with UpperEdge
  • Reduced project risk based on the establishment of a proactive governance model with active executive participation
  • Meaningful motivators and incentives aligned to project cost, schedule, service and quality of deliverables
  • Contract flexibility with incremental discounts for work beyond scope of initial agreement, and earned services credits providing additional cost savings as the project progresses