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Client Challenge
Following M&A activity, the client sought a significant cost reduction through consolidating their third-party spend across the newly combined business
There was limited procurement capacity and capability and an inconsistent approach to managing and tracking third party spend and limited oversight of strategic vendors
The client required extensive supplier rationalisation to be realised, whilst ensuring the retained supply base contracts were suitable for the new combined entity
What We Did
The implementation of a new governance framework to track all 3rd party spend and benefit opportunities
A detailed breakdown and analysis of spend by category from the accounts payable and invoice data
Provided procurement and vendor management practitioners with deep expertise to review and renegotiate contracts with existing suppliers
Facilitated business-focused workshops to create detailed plans for specific categories such as Market Data, Facilities Management, Merchant Services, Travel Polices and Regulatory Fees
Created a prioritised delivery roadmap to deliver quick wins and longer-term strategic opportunities
Developed TOM model proposal to achieve the above
Outcome & Results
In 8 weeks, TORI’s procurement practitioners identified a £2.9m pipeline worth of savings, delivering £1.25m of this within the engagement term.
Selected highlights include:
Facilities Management contract was reviewed in detail. Renegotiated contract delivered savings of £241k
A full review of the Merchant Services with opportunities to work with existing supplier to deliver £244k
Termination of Processing Services and investment research contracts saving £735k
The development of a Market Data roadmap with £990k of identified savings
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