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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Post Office
BA
BP
A little bit about Cambridge MC
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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We were approached by one of the fastest growing data centre providers in Europe. With over 20 data centres throughout the continent, they are consistently meeting the need for scalable, high-performance infrastructure. Despite this, a key data centre in Scandinavia had become reliant on a single, non-redundant 1 Gbps internet service from a local provider, posing significant risks to operational continuity. To enhance the reliability of its network and resolve these risks, our client needed to establish additional connectivity paths to ensure the redundancy of its infrastructure. The Ask Cambridge Management Consulting was engaged to address these connectivity challenges by identifying and evaluating potential vendors and infrastructure options to create second and third connectivity paths. This involved exploring various types of connectivity, including internet access, point-to-point capacity, wavelengths, and dark fibre. Additionally, Cambridge MC was asked to provide recommendations for building a local fibre network around the data centre to control and maintain diverse paths. This would allow the data centre to connect directly to nearby points of presence (PoPs) and reduce dependency on external providers, thereby enhancing network resilience and operational control. The goal of this project was to ensure that the Nordic data centre could maintain continuous operations even in the event of a failure in the primary connection. Approach & Skills Cambridge MC approached the project with a focus on ensuring operational continuity and resilience for the data centre. By identifying multiple connectivity paths, we aimed to mitigate the risk of network failures and ensure that the data centre could maintain continuous operations even in the event of a failure in the primary connection. This approach allowed Cambridge MC to provide a comprehensive solution to address both immediate and long-term connectivity needs. We employed a combination of Agile and Waterfall methodologies to manage the project. The initial investigative phase allowed a Waterfall approach, in which our team conducted thorough research and analysis to identify potential vendors and connectivity options. This phase involved detailed interviews with various telecommunications providers and an assessment of publicly available information. Once the initial analysis was complete, the workflow transitioned to an Agile approach for the implementation phase. This allowed Cambridge MC to adapt to new information and feedback from stakeholders, ensuring that the final solution was both flexible and robust. Challenges Lack of information: One of the primary obstacles we faced was the lack of detailed network maps and information from some of the potential vendors. To overcome this, the team conducted extensive interviews with contacts at these companies and leveraged its existing network of industry contacts to gather as much information as possible. Remote location: Another challenge was the remote location of the data centre, which limited the availability of local infrastructure and required us to explore creative solutions for connectivity. Cambridge MC addressed this by proposing the construction of a local fibre network around the data centre, which would allow for greater control and flexibility in connecting to nearby PoPs. Fragmented factors: Additionally, coordinating with multiple vendors and ensuring that their services could be integrated seamlessly posed a logistical challenge. We mitigated this by recommending a phased approach to implementation, starting with the most critical connectivity paths and gradually expanding to include additional options. Outcomes & Results Increased Connectivity: Cambridge MC successfully identified and evaluated multiple connectivity paths for the data centre. By exploring various types of connectivity, including internet access, point-to-point capacity, wavelengths, and dark fibre, we provided a comprehensive solution that significantly enhanced network resilience and reliability. Greater Control & Flexibility: Our recommendations for building a local fibre network around the data centre allowed for greater control and flexibility in connecting to nearby points of presence, ensuring continuous operations even in the event of a failure in the primary connection. New Vendors: The team’s extensive network of industry contacts and deep understanding of the regional telecommunications landscape allowed for a thorough and nuanced evaluation of potential vendors and connectivity options. Scope for Future Work: Cambridge MC identified several future developments with the potential to further enhance international connectivity and provide additional redundancy for the data centre. We also proposed further assistance, including a site visit for a more in-depth analysis of options, issuing RFI/RFP to vendors for capacity and fibre, and conducting similar connectivity studies for other candidate sites in the region.
Thames Freeport this week revealed the eight companies selected to participate in the Freeport’s Connectivity Lab, an initiative focused on validating commercially proven technologies in live port and logistics environments.
Emerging as a hub for innovation, Thames Freeport is a unique initiative designed to stimulate trade and transform the lives of people in its region. Leveraging global connectivity and occupying a strategic position with intermodal capabilities across river, rail, and road, Thames Freeport has recognised its opportunity to drive economic regeneration for the local area. Thames Freeport engaged Cambridge Management Consulting to design a clear strategy for innovation over the next three to five years. Key considerations for this innovation strategy included objectives and KPIs, the future of the business ecosystem in the region, physical clusters and assets such as innovation hubs, and opportunities and challenges on the way. The Solution Working with our innovation partner, L Marks, Cambridge MC conducted an innovation strategy project which involved the following: Engaging with a range of stakeholders and partners from local authorities to corporate partners across the Thames Freeport area, leveraging interviews with key individuals to build a common picture of innovation aspirations, opportunities, and challenges. Conducting a series of workshops for the Thames Freeport team to consider visions and objectives, themes and focus areas, physical hubs and overall programme structure, and a three-year roadmap plan. Building a comprehensive innovation strategy which internalised all of the above questions. This was then presented to their board and formed the basis of the public tenders for innovation programmes that were then made public.
