Cambridge MC provides £13.67m in savings
Across a client portfolio that includes 3000+ sites in 120 countries
Cambridge MC worked with a large company leading the workplace revolution and representing some of the largest brand names in the workspace-as-a-service market.
This client had realised that internet services provided to customers were key to their business success. With 3000+ sites in almost 900 cities, in over 120 countries, they need to ensure that telecoms services are being bought at the right quality and at the best market price.
Our client was following an aggressive acquisition strategy, and the procurement processes and contracts are currently failing to keep apace.
They initially required a Procurement as a Service solution and market review of current spend. We sought to find ‘cash now’ savings and create a report outlining improvements to the process for telecoms procurement.
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The
Strategy
In August 2017, the team was brought on to run a global cost review for the group.
As this project developed, the scope-of-work was expanded to include onboarding and managing new suppliers. The aim was to invigorate the cost base and improve the quality of experiences (QofE) for customers. We also led on programs to ensure that our client's centres have a bandwidth that is ‘cost sensible’ without affecting QofE.
Analysis
- Conducted a review of client's data costs globally to find where the largest areas of opportunity and most likely areas for quick wins were. In this review, the processes in North America were found to be efficient and their pricing on-market. This region was dropped from the scope of work after getting our seal-of-approval
- Developed and ran RFPs for Australia, Japan, South East Asia and Africa in pursuit of improved market pricing. The RFP sought out new suppliers as well as sending out a wake-up call to some existing providers
- Renegotiated agreements for pricing across a number of markets and suppliers, including major suppliers to the group across Europe. Discounts were leveraged against introducing new services to client through the supplier's new operations in Asia
- Developed the mathematics behind sizing the bandwidth requirement for centres, as well as looking at new ways of deploying bandwidth into centres that was more focused on the way the bandwidth is used by the end-users
Knowledge & Skills
- Extensive use of the Cambridge MC Group’s database of market rates, developed over time through extensive trading
- Knowledge of best practice procurement for telecoms, including understanding the operational impact of procurement decisions
- The ability to define, draft and manage end-to-end Procurement RFP processes across a large global network
- Our knowledge of a wide range of telecoms products
- The ability to work with stakeholders across different countries, time-zones and cultures
Outcomes & Results
01
PaaS Solution
As the client expanded, we led their centralised procurement for telecoms. We helped them to manage these contracts as their change in business model allowed franchisees to take on the responsibility for procurement
02
2019 - £3.67m in savings
In 2019 the team provided £3.67m in savings from its global activities with the group, while simultaneously increasing the provided bandwidth by over 20%
03
2020 - £10m in savings
In 2020, we saved the group nearly £10m, circa 30% of their global telecommunications expenditure
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Cambridge Management Consulting is a specialist consultancy drawing on an extensive network of global talent. We are your growth catalyst.
Our mission is to help our clients make a better impact on the world.
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