Situation
G2 was engaged by this Fortune 100 Multinational Conglomerate to run consecutive RFPs for its Wireline and Machine-to-Machine (M2M) services followed by a competitive RFP for U.S. and Canadian Wireless with their five incumbent providers. The complex nature of the network was made even more challenging due to a recent merger of two equally complex legacy entities with invoicing and inventory spread across multiple billing accounts. The Wireline engagement included global data, voice and conferencing services while the M2M project represented an environment that required support for over 500,000 devices throughout North America. In addition to the M2M devices, the Wireless RFP project included an additional 40,000 traditional mobile devices (smartphones, tablets, AirCard/MiFi). The negotiations for each project required collaboration with multiple cross-functional stakeholders with requirements and expectations varying between several business units and regions.
Negotiation
G2 immediately set about the task of building effective network services profiles for each project by evaluating current contracts, holding numerous discussions with key stakeholders and meticulously documenting relevant service components down to the most granular level of line item detail. Extensive benchmarking provided insight into this customer’s position relative to the various in-scope markets and provided a clear roadmap for G2 to help drive the most efficient and impactful negotiations. Each negotiation included face-to-face bidder’s conferences that were highly orchestrated to ensure each carrier clearly understood the RFP structure and expectations while also reinforcing the competitive nature of the engagement. Following G2’s tried-and-true methodologies, each engagement produced significant positive results not only for pricing but for operations and contractual terms and conditions as well. For the M2M negotiations, the results were especially noteworthy given the customer’s weak starting leverage position, length of existing term remaining and internal operational challenges that affected their customer base.
Result
The collaborative negotiations resulted in over 24% savings for U.S. Wireline, 26% saving for North American M2M, 21% savings for U.S. Wireless and 43% for Canadian Wireless while significantly improving the contractual terms with all incumbent carriers. Collectively, the initiatives yielded more than $31M in savings. All results realized through G2’s efforts were attained without carrier or services migration.
