|
|
Case study:
Global information services conglomerate |
 |
|
Sourcing/Procurement |
|
Situation
|
Client was seeking to workout
a global managed solutions relationship consisting
of several managed services scopes of work and
a related contract governing all traffic. Spend
was in excess of $25MM annually. The relationship
was no longer meeting clients business needs,
yet it had 4 years to go on a 7-year term. Rates
had been brought in line with market 4 months
prior to engagement. Client had attempted to renegotiate
the agreements during the prior 6 months |
|
|
|
| |
Approach & Benefits |
| • |
Through detailed financial analysis
and benchmarking, Union Square was able to identify
multiple sources of negotiation leverage. Next, Union
Square designed a negotiation strategy and helped gain
senior management approval and support
|
| • |
Next, Union Square negotiated a new
agreement generating $7MM (28%) in annual savings and
providing flexibility to meet business needs. The client
achieved this without meaningful conces sions. Total
engagement duration was 5 months
|
| • |
Subsequently completed Local (38%
savings) and PBX equipment (15% savings) engagements
|
| |
|
| |
|
|
|
|
| |
| |
| |
| |
Case study:
Tier-1 NYC investment bank |
|
|
Sourcing/Procurement |
|
Situation
|
Client intended to renegotiate
existing contracts without establishing a competitive
environment, anticipating feasible savings up
to 16% |
|
|
|
| |
Approach & Benefits |
| • |
Union Square created a competitive
environment and renegotiated a terminating MCI agreement
and an AT&T agreement one-and-a-half years before
term, realizing 50% ($34.4MM) in rate-based savings
over three years
|
| • |
Secured one-time up-front credits
totaling $2.7MM
|
| • |
Established a resale program through
MCI to client’s correspondents which realizes
$1.0 MM in profits annually
|
| |
|
| |
|
|
|
|
|
| |
| |
| |
Case study:
Domestic insurance company |
|
|
Sourcing/Procurement |
|
Situation
|
Client’s objective
was to renegotiate one-year old, expiring WorldCom
Network Services relationship |
|
|
|
| |
Approach & Benefits |
| • |
Benchmarking determined that client’s
rates were 25%+ over carrier best-in-class
|
| • |
Leveraged expiration of existing agreement
and traffic well in excess of commitment levels to achieve
savings objectives
|
| • |
Created dual carrier environment,
leveraging 2nd tier carrier for selected traffic components.
Achieved annual savings of 48% ($5.5M)
|
| • |
Subsequently completed Local (35%
savings) and Mobile engagements as well as a Needs Audit
|
| |
|
|
|
|
| |
| |
| |
Case study:
Tier-1 NYC brokerage |
|
|
Audit and Optimization |
|
Situation
|
| Client is a division of
a large domestic NY based bank. Most contracts
are negotiated at an overall company level but
the client has responsibility for management
of its network. Audit & optimization is
recognized as part of best-practices and conducted
every 12 – 24 months |
|
|
|
| |
Approach & Benefits |
| |
Performed audit of local and long
distance services, as well as USF/PICC taxes and surcharges.
Total audited spend was $2 million annually. |
| |
Performed physical inventory of lines
and circuits at demarcation points. |
| |
Consolidated invoices. |
| |
Re-engineered circuitry. |
| |
Effort resulted in total refund of
$200K and ongoing savings of 6% for the client. |
|
|
|
| |
| |
| |
Case study:
Global food & beverages company |
|
|
Audit and Optimization |
|
Situation
|
Client is top-5 global food
and beverages company. Scope of engagement was
the domestic US. Union Square was asked to conduct
a detailed audit of invoices, make optimization
recommendations and create a physical inventory
than can be used to establish TEM going forward
|
|
|
|
| |
Approach & Benefits |
| |
Performed audit and network optimization
of local and long distance services at over 50 locations
in the US. |
| |
Conducted physical inspections and
developed physical inventory at each site. |
| |
Consolidated and converted off-contract
long distance spending. |
| |
Identified and disconnected lines/circuits
that are not being used or are not working. |
| |
Effort resulted in over 8% of audit
savings and an additional 12% of network optimization
savings. |
|
|
|
| |
| |
| |
Case study:
US division of a global bank |
|
|
Telecom Expense Management |
|
Situation
|
Client sought to optimize existing
IXC, Local and Wireless relationships with a combined
annual spend of $6.3 MM. In addition to a one
time “clean-up”, client sought to
improve control and maximize savings going forward
in anticipation of significant company growth
|
|
|
|
| |
Approach & Benefits |
| |
Union Square developed a competitive
sourcing environment and reduced the initial baseline
spend by $1.9 MM (30%) |
| |
Post sourcing, Union Square implemented
an ongoing Telecom Expense Management process inclusive
of invoice processing, audit, optimization and contract
management |
| |
Over the first 15 months of this
engagement an additional $0.9 MM (14%) has been achieved
and further cost savings continue to be realized |
|
|
|
| |
