Client Profile
- A $5B Worldwide Shoe and Accessory Retailer
Business Issue
- Company embarked on a transformation project implementing SAP ERP
- Desired to build an AMS capability for the SAP ERP systems which leveraged the capabilities of a third-party AMS provider
- Engaged UpperEdge to initiate the evaluation and selection processes and negotiate the most beneficial and highly competitive agreement
Services & Results
UpperEdge assisted in developing and executing a holistic negotiation strategy, advising at the executive level on program approach and sourcing strategy:
- Assisted company in identifying appropriate RFP participants with demonstrated capabilities to support AMS needs and facilitated an RFP to evaluate, select and contract AMS services
- Negotiated a best-in-class commercial construct that achieved > 10% reductions totaling $500K over the 5-year term
- Secured additional credits of $500K with a waiver of 100% of transition fees totaling $300K and an additional $200K in relationship investments
- Ensured support flexibility securing commitments to volume variations of +/- 10% in ticket volumes with no adjustment to fees
- Obtained flexibility to roll over 20% of underutilized enhancement hours month over month with added flexibility to swap under-allocated ticket volumes towards additional enhancements
- Attained market-favorable, benchmarked commercial terms for SLAs, rates and productivity improvements
