Strongbow generated over $25M in annual savings within just 5 months by leading directed negotiations with AT&T and Verizon, despite extensive circuit inventories of legacy, end-of-life network connectivity
Client Situation:
- Fortune 500 Fintech company with over $12B in revenue operating in ~140 countries
- Growth through acquisition led to poor visibility with both circuit inventories and contracts
- A significant inventory of legacy (TDM) services and poor commercial terms prompted incumbent suppliers to threaten rate increases leading to unfavorable bargaining power
Strongbow Approach:
- Developed detailed services inventory and created ‘best of best’ analysis across all former contracting parties to identify immediate savings as well as longer term savings synergies
- Launched a directed renegotiation process with incumbent suppliers
- Orchestrated supplier communications including a multilevel escalation strategy leveraging Strongbow’s relationships within supplier pricing organizations
Result:
- Generated $25M+ year in annual ‘sign & save’ cost reductions, in addition to cost avoidance estimated at $24M annually (given potential rate increases for end-of-life services)
- Negotiated 3-year TDM migration plan providing price protection and cost predictability throughout the new contract term
- Preserved commercial flexibility to support client’s plans to migrate to SD-WAN