CASE study: Vendor consolidation

BACKGROUND	Our client, a major Australian financial services institution, had recently merged highlighting the need for vendor consolidation. At the time there were some 150 IT vendors across the 2 organisations with annual spends over $15M. Supplier accountabilities were fragmented resulting in a sub-optimal service / cost outcome. Lack of service level clarity exasperated this issue further. The organisations approach to IT vendors was also culturally diverse one being centralised and one decentralised. reveal group was requested to review the current state and recommend a solution.
OUR ROLE	reveal group's approach to vendor consolidation focused on delivering cost savings and streamlining vendor management through identification of duplication and consolidation of key vendors. Strategies were developed to gain optimum benefit for the new merged organisation through stakeholder management and sound communication.
RESULT	reveal group identified considerable opportunities for vendor consolidation: Year-on-year cost savings of $10 - $15M Supplier consolidation, for better service Enhanced time to market, customer experience, stability and reliability Suppliers have end-to-end accountability for all of the activities, assets and services required for a business service Sustainability supported by internal capability effectiveness recommendations; provide architectural direction and support processes.