Cambridge MC Conducts a Cost of Access Reduction Programme in Asia
For a Technology & Service Leader Powering the Global Financial Market
A renowned global services provider powering the financial market, approached Cambridge Management Consulting to conduct a procurement cost reduction programme on their entire worldwide inventory.
As part of the cost of access reduction project, Cambridge MC carried out a comprehensive review of the circuit inventory across Asia, with a particular focus on Vietnam. The project involved a systematic assessment of their connectivity services, aiming to identify areas where spending could be optimised without compromising service quality or operational requirements — as well as identifying services that were incorrectly billed.
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The
Request
During the initial analysis, one service stood out due to a high monthly recurring charge (MRC): a 200 Mbps layer2 service connecting Ho Chi Minh Data Center in Vietnam to SG2 in Singapore.. This circuit, established in 2018, had experienced minimal pricing adjustments over the years, making its ongoing cost significantly higher than comparable routes based on current market trends.
Cambridge MC’s approach leveraged its up-to-date market intelligence and strong supplier relationships to benchmark the service against prevailing rates, identify cost-saving opportunities, and initiate discussions with relevant vendors. The objective was to align the pricing of this legacy service with current market standards, thereby delivering tangible cost reductions for our client.
Approach & Skills
Cambridge MC adopted a structured and data-driven approach to address the high cost of the identified circuit. The process began with a detailed review of current pricing, service specifications, and contractual history in collaboration with the incumbent supplier’s account management team. By presenting comprehensive benchmarking analysis and market intelligence, Cambridge MC was able to demonstrate clearly that the existing price was not aligned with current market rates for comparable services in the region.
During these discussions, the supplier referenced a 10% price reduction granted the previous year and indicated an unwillingness to consider further discounts based on their internal pricing guidelines. In response, Cambridge MC leveraged its established supplier relationships and market network, reaching out to alternative providers to solicit competitive offers for equivalent services.
By combining rigorous data analysis, collaborative negotiation tactics, and the use of alternative sourcing, Cambridge MC was able to drive the conversation towards more market-aligned pricing for the client's cable routes.
Outcomes & Results
1
Cambridge MC achieved a final offer from the supplier that matched the market level, achieving a 50% reduction in MRC.
2
This renewal improvement was achieved within 15 days of Cambridge MC's involvement.
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