Technical Consultancy Cost Reduction
Context & Objective
The client wanted assistance in establishing category strategy for technical consultancy services, conducting a sourcing project to reduce cost, reducing supplier base, and minimizing risk by harmonizing terms and conditions.
Approach & Result
PIR supported in implementing a new category management approach within the client's organization. Additionally, PIR invited and conducted negotiations with six suppliers resulting in 15% cost reduction on current price list, 12% cost reduction of spend for first year, new and standardized agreements with all suppliers, and extension of payment terms from 30 to 45 days.