Optimizing Procurement Through Strategic Contract Renegotiations
Retail | Restructuring | Procurement
Our client is a leading global distributor in the bowling industry, providing products and services to customers worldwide.
The client was seeking ways to reduce procurement costs and streamline their operations. With numerous supplier contracts in place, they needed to identify opportunities for cost reduction while maintaining strong relationships with key vendors.
OUR APPROACH
We collaborated with the client to implement a restructuring strategy focused on renegotiating contracts with suppliers and improving the efficiency of their shared services. Our work included:
Analyzing current supplier contracts to identify areas where cost savings could be achieved.
Leading contract renegotiations to secure better terms and reduce procurement costs by over 20%.
Implementing shared services models to streamline internal operations and improve cost efficiency.
OUR APPRENTICESHIP
Following our apprenticeship model, we worked closely with the client’s procurement team to build their skills in contract negotiation and cost management:
Client personnel shadowed our team during contract renegotiations and gradually took on lead roles in discussions with key suppliers.
We guided the client’s team through the process of identifying cost-saving opportunities, giving them the tools and confidence to manage future negotiations independently.
“Their storytelling helped internal and external executives hear us in a new way. I want to continue to present like that moving forward.”
Manager, Procurement
OUR RESULTS
The successful renegotiation of contracts led to a significant reduction in procurement costs, allowing the client to reallocate resources and improve their bottom line.
Through our apprenticeship approach, the client’s team gained valuable skills in contract negotiation and cost management, empowering them to manage similar initiatives moving forward.
OUR RECOMMENDATIONS
Contract Renegotiation
We renegotiated supplier contracts, resulting in a reduction of procurement costs by over 20%.
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Shared Services Implementation
We recommended and implemented shared services models to further improve operational efficiency