An IT company was focusing on aggressively managing it’s costs and engaged in a company wide initiative to examine it’s purchasing cost drivers.
A holistic review of the supplier contracts was conducted to prioritize those with high risk and high opportunity for cost savings. Detailed analysis of the contracts, the usage and solution options led to a series of contractual modifications, changes to business practices as well as procurement changes.
This project successfully reduced purchasing costs by 4%. The ROI on this project was 2 months.