The Client

A logistics company with operations across the United States, specializing in transportation and supply chain solutions. Headquartered in a major U.S. city, the company has a significant presence in the logistics industry. The projected annual telecom spend for this initiative was $307,000, covering WAN services.

Scenario

The company was facing challenges with their incumbent WAN provider, including non-competitive rates, frequent changes in account teams (over six times in 22 months), and persistent billing issues that remained unresolved. The internal IT team was grossly understaffed, and there was significant concern about the potential disruptions of migrating to a new provider. The company needed to explore the market to either leverage better terms from the incumbent or find a new provider.

The objectives were to: 

• Shop the market for WAN services. 
• Leverage the incumbent provider for better rates and service. 
• Potentially replace the incumbent if necessary. 
• Address the understaffing of the IT team and migration concerns.

Result

The company engaged ProcureLogix to conduct an RFP and assist in renegotiating with the incumbent provider. ProcureLogix established contact with senior executives at the incumbent provider, employed strategic leveraging techniques, and resolved outstanding billing issues. This approach resulted in a 46% reduction in costs, the assignment of a dedicated enterprise-level account team, and the establishment of a world class agreement that surpasses those of many Fortune 500 companies that we have seen.

By partnering with ProcureLogix, the company not only achieved substantial cost savings but also secured a more stable and efficient WAN service structure. The new agreement and dedicated account team have significantly improved the management and reliability of their telecom services, allowing the company to focus on its core logistics operations.