Maplin: Sourcing

Engaged to ensure sourcing, procurement and cost management were digitalised.

Sector
- Private Sector

Our client was experiencing poor performance and a deteriorating relationship as a result of an ageing
incumbent supplier and required a fresh approach including tactical and strategic sourcing support.

Leading Resolutions was engaged to assist with sourcing, procurement and cost management.

The Solution

Our solution was formed of three main assignments. The first assignment included:

A review of existing SAP contracts.

Review of potential supplier proposal and commercials

Negotiation advice and support to complete purchase of perpetual licence

Recommendation on next steps (including provision of a full go to market process)

The second assignment looked at go-to-market planning including supplier recommendations, a solid sourcing strategy and a detailed plan for the go to market process. We considered all viable vendors that were right for our client’s overall goals.

The third assignment consolidated the learning from the first two. We provided leadership and focus to drive the go to market process and deliver the digital strategy:

Market sounding and supplier shortlisting

Go to market requirements definition

Go to market document build

Go to market review and response by shortlisted suppliers

Go to market response analysis, supplier presentations and references

Commercial and contract negotiation with preferred supplier

Board approval and contract signature

The Results

Business case identified a saving of £2.15m over 5 years; the opportunity to improve potential supplier’s commercial proposal resulted in the client undergoing a full go to market to source an alternative supplier for hosting and negotiated SAP licensing

Actual savings of £2.28m achieved over 5 years through negotiating a total reduction of £1.28m in SAP licensing costs over 5 years; an additional one-off cost saving of £0.32m by negotiating the extension of existing service at no charge with a 9-month transition;contract negotiations with selected hosting partner reduced proposed costs by £0.68m over 5 years

The sourcing, selection, negotiations and transition to a new supplier was a huge success thanks to the advice and leadership of Leading Resolutions. The team brought focus and drive to deliver a sustainable solution not only resulting in savings of £2.28m but also providing a strategic sourcing blueprint for future contracts.

CIO