Strongbow launched a pay-to-play negotiation with incumbent providers to capture $4M (10%) in immediate savings in parallel with a competitive bid for SD-WAN services.
Client Situation:
- Fortune 100 retail chain with 4,500 retail stores in nine countries, four e-commerce sites and approximately 286,000 associates
- Strongbow was providing both technical and commercial guidance for client’s competitive bid for its planned network modernization program (SD-WAN)
- Given its focus on SD-WAN, client did not initially plan to negotiate legacy services with its incumbent providers
Strongbow Approach:
- Developed detailed services inventory, quantified gap to market and identified opportunities for commercial improvements to support ongoing modernization effort
- Recommended a commercial strategy that would allow client to secure short-term savings without sacrificing client’s longer-term modernization goals
- Launched renegotiation strategy with incumbent suppliers leveraging modernization as a future opportunity that would only be attainable after current agreements were refreshed
Result:
- Generated ~$4M/year (10%) in immediate cost reductions, which became more critical when network modernization plans were later delayed
- Secured commercial terms that enabled client to proceed with its network modernization strategy without vendor-lock in or contract exit penalties