Due to consolidation and availability of data across their contracted landscape, this client was able to act swiftly in the midst of demanding times.
Opportunity
An industry leader in the Travel, Transportation and Hospitality space was heavily hit by the COVID-19 pandemic. It had to take some immediate steps to steer through these aggravated times.
The company had implemented ISG GovernX® for providing oversight to its Tier 1 suppliers and had consolidated 1,023 contractual documents to cover contracts over 241 suppliers.
The company had implemented ISG GovernX® for providing oversight to its Tier 1 suppliers and had consolidated 1,023 contractual documents to cover contracts over 241 suppliers.
Imagining IT Differently
During the height of COVID-19
The company was keen on data analytics. ISG was able to provide periodic analysis across the landscape. Data analytics was used as a key lever to provide the company with insights on spend and supplier performance areas. Issues on problem management, spend pool, etc. were constantly highlighted so that the company could drive operational efficiency and make informed decisions.
Post COVID-19
ISG conducted a price benchmarking to produce optimal rates for their key suppliers. These rates were used to renegotiate with the suppliers and optimize costs across three regions. A resource analysis report was provided to the client for resources with heavy rates and utilization trends. An analysis on software license utilization is in progress.
Contracts were identified across Tier 1 to Tier 3 suppliers where price discounts and extended payment terms could be negotiated.
As part of portfolio optimization work orders are being scrutinized to ensure optimal billing, supplier consolidation and ensure zero monetary leakage. Due to consolidation and availability of data across their contracted landscape and a discipline of conducting periodic analysis the client was able to act swiftly to the demanding times.
The company was keen on data analytics. ISG was able to provide periodic analysis across the landscape. Data analytics was used as a key lever to provide the company with insights on spend and supplier performance areas. Issues on problem management, spend pool, etc. were constantly highlighted so that the company could drive operational efficiency and make informed decisions.
Post COVID-19
ISG conducted a price benchmarking to produce optimal rates for their key suppliers. These rates were used to renegotiate with the suppliers and optimize costs across three regions. A resource analysis report was provided to the client for resources with heavy rates and utilization trends. An analysis on software license utilization is in progress.
Contracts were identified across Tier 1 to Tier 3 suppliers where price discounts and extended payment terms could be negotiated.
As part of portfolio optimization work orders are being scrutinized to ensure optimal billing, supplier consolidation and ensure zero monetary leakage. Due to consolidation and availability of data across their contracted landscape and a discipline of conducting periodic analysis the client was able to act swiftly to the demanding times.
Future Made Possible
Key benefits from the engagement.
- Contract management
- 93% on-time submission of Deliverable artifacts and 77% on time approvals through the tool.
- Spend management
- Processing on an average of 4000+ line items of Invoice management.
- The Invoice Discrepancy has reduced from 50% to 10%.
- Performance management
- Average resolution time for service-level agreement (SLA) discrepancies has reduced from five days to two days.
- Savings till date
- $5 million in client savings by preventing value leakage and cost avoidance.
- 50% reduction in manual efforts.
