Financial Institution Realizes 8% Cost Savings Across Select Vendor Spend
This is an AArete Financial Services Insight
The client, one of the largest banks in the United States, brought in AArete to look for cost savings opportunities from a strategic sourcing/procurement viewpoint. The focus of the engagement included financial information services, banking hardware and software, facilities management, and optimization of technology licensing.
AArete focused on a subset of the $93M in vendor spend, reviewed the service contracts of 10+ vendors, worked with each related vendor relationship owner, and conducted stakeholder interviews with employees across multiple lines of business impacted by each vendor relationship.
AArete then compared the client’s current state (vendor pricing, service/maintenance guarantees, etc.) to the market, performed an opportunity analysis, and created an implementation plan to achieve savings.
AArete identified multiple opportunities for the client to renegotiate vendor contracts for lower costs and improved service/maintenance guarantees while receiving credits back for unused services amounting to a potential cost savings up to $7.7M.
The client was also trained in best practices and given tools to initiate and facilitate vendor negotiation, which included internal/external communication drafts, Memorandums of Terms, and negotiation scripts.
Learn more about AArete’s Profitability Improvement solutions