The Client

A distribution company in the food and beverage industry, headquartered in the United States. The company operates numerous distribution centers across the country and was experiencing rapid growth with new offices & distribution centers expected to open soon. The projected annual telecom spend for this initiative was $4.86 million, covering voice, Mobility, WAN and third-party managed NOC solutions.

Scenario

The company sought to RFP its entire telecom infrastructure, including voice, mobility, WAN, and explore third-party managed NOC services. With new distribution centers opening across the United States and more offices expected soon after, the company aimed to: 

• Drive down current telecom costs. 
• Establish competitive rates for future expansion. 
• Restructure its primary incumbent contract, which was on its 14th amendment. 
• Create new, up-to-date, and sound contracts. 
• Obtain bids for third-party managed NOC services. 
• Structure and budget rolling out a corporate wireless program for 20K+ employees.

The primary objective was to reduce costs by leveraging their primary incumbent vendor, freeing up the budget to accommodate new expenses driven by growth while achieving significant overall savings.

Result

ProcureLogix was engaged to facilitate, manage, and run an RFP through its Telibid™ platform. The engagement included: 

• Supplying the customer with 10 competing vendors for the bids. 
• Building an RFP document tailored to the company’s specific goals. 
• Acquire enterprise level bids from wireless providers
• Negotiating world-class contracts.

Within 9 months, the RFP was closed, and contracts were negotiated with 5 different telecom vendors. The primary incumbent had also created a new Master Agreement, all of which was led and negotiated by the ProcureLogix team. The engagement achieved an overall cost reduction of 28%, even after accounting for new expenditure related to growth and telecom services. This success led to a longstanding, repeated engagement with the customer, with the latest engagement yielding a 34% reduction on WAN services alone.