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. To meet its goals, the client, 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 benefited 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
