Client Challenge
- Following M&A activity, the client sought a significant cost reduction through consolidating their third-party spend across the newly combined business
- There was limited procurement capacity and capability and an inconsistent approach to managing and tracking third party spend and limited oversight of strategic vendors
- The client required extensive supplier rationalisation to be realised, whilst ensuring the retained supply base contracts were suitable for the new combined entity
What We Did
- The implementation of a new governance framework to track all 3rd party spend and benefit opportunities
- A detailed breakdown and analysis of spend by category from the accounts payable and invoice data
- Provided procurement and vendor management practitioners with deep expertise to review and renegotiate contracts with existing suppliers
- Facilitated business-focused workshops to create detailed plans for specific categories such as Market Data, Facilities Management, Merchant Services, Travel Polices and Regulatory Fees
- Created a prioritised delivery roadmap to deliver quick wins and longer-term strategic opportunities
- Developed TOM model proposal to achieve the above
Outcome & Results
- In 8 weeks, TORI’s procurement practitioners identified a £2.9m pipeline worth of savings, delivering £1.25m of this within the engagement term.
- Selected highlights include:
- Facilities Management contract was reviewed in detail. Renegotiated contract delivered savings of £241k
- A full review of the Merchant Services with opportunities to work with existing supplier to deliver £244k
- Termination of Processing Services and investment research contracts saving £735k
- The development of a Market Data roadmap with £990k of identified savings
