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IT Vendor Spend Reduction

Are you really using all the software that you are paying for?

We helped a large National Oil company reduce several hundred thousand dollars of spend by reviewing and analyzing their IT vendor contract terms, license usages and support organization structures. Based on our findings, the company was able to drop several expensive software licenses and reduce cost. We also made recommendations on organization restructuring and outsourcing strategy.

If you need help reducing IT vendor spend, or need help renegotiating contracts, we are here to help.

Vendor Spend Optimization

When was the last time you analyzed your vendor spend and took pro-active measures to control them?

Before you can reduce vendor cost, you need to understand what the controllable cost is. For this begin with understanding who is spending, on what items, and with whom. As you start this analysis, you may find that you need to revisit how data is being coded into the systems.

On one cost reduction project that I worked on, 90% of the spending for a large operational area was being coded against miscellaneous items. This meant that any meaningful assessment of historic spend would require sifting through the comments (thankfully AI can help tremendously with this now). We used a combination of historic spend comments and workshop with requestors as well as buyers to determine how the data entry processes needed to be updated. This helped provide more transparency into actual spend.

Once we had clean data, it was easier to dig deeper to understand what was being ordered. As we dug deeper, we were able to show the business team that there was a need to consolidate spend. The same items were being ordered through multiple suppliers. We also saw that the spend was spread across too many vendors. Both of these factors heavily impact the customer’s purchasing power. Consolidation of vendors was the natural follow-up action, and that saved the customer several hundred million dollars.

Please contact us if you would like to reduce the vendor spend reduction in your organization.

Supplier Development

Our track record developing our clients from bridging what they do and what they know to what it translates in the international market, to assessing where do they stand vs international suppliers and implementing “buy- in” plans for gap closure, awarded BBE the recognition and the country level project to help Mexico define the baseline, the minimum standard for local supplier requirements.

Joint Venture Partner Recovery

Our 20+ years of experience working with global E&P organizations on the commercial day-day Joint Operating Agreements (JOA) as well negotiating them gives our clients a win-win outcome. We help our clients via advisory or training how to leverage their position with exciting JOA’s to maximize partner recovery operating or non-operating. Sometimes is in the ask to JV partners for the relevant data on the right time, asking the right questions to the right people, having the right technical engagement on the operating committee or implementing the right performance management process. We help our clients with tailor tools to make their JV’s work.