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Dissecting Disruptors in the CPG and Retail Space

How can CPG and Retail companies thrive despite market pressures – and retain loyal customers – in a highly disrupted and competitive market? Listen in to find out from ISG's Sunder Pillai.

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Rise of the Digital Consumer: Are you Ready?

Are you looking at digital solutions such as direct-to-consumer ecommerce, internet of things, connected smart homes, demand-driven supply chains, or innovation via customer collaboration?

ISG has performed hundreds of engagements for consumer goods companies across the globe. From your procurement to your network, software, next-gen sourcing and benchmarking needs, ISG brings deep industry, market and advisory insights and solutions to help you achieve your strategic goals.

Your Employees Need Flexibility

Optimize employee experience and technology adoption and ROI. ISG can help you provide the security, strategy, flexibility and tools for your employees to adapt to new ways of working, collaborate and increase productivity. 

Your Customers Demand Digital

Reimagine your online retail channel with us. We’ll help you leverage data and intelligent automation in your supply chain, forecasting and back office, and adopt digital solutions to optimize your processes and reach your consumers directly. 

Resetting IT Priorities

Recessions have a way of exposing underlying weakness and accelerating organizational changes. In an industry already reeling from disruption, how can you proactively prepare for what’s coming next?

Join ISG’s Sunder Pillai as he outlines how resetting your IT priorities is your first step at Aspire's The Moving Cheese event.

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Client Stories

Negotiation and Innovation Reduces Spend by 65 Million Dollars

Jul 18, 2021, 22:50 PM
Discover how ISG’s enterprise agreement software negotiation for a leading health, consumer goods and life sciences company resulted in an $65.1 million (36 percent) proposal cost reduction over three years.
Title : Negotiation and Innovation Reduces Spend by 65 Million Dollars
Alternate title :
A global health and life sciences leader needed help negotiating its enterprise agreement (EA) renewal with Microsoft. The current renewal discussion centered on transforming the Office 365 model from a pure subscription service to a consumption-based model that would provide greater enrollment flexibility and fewer fixed commitments and costs.
While the opportunity to create new efficiencies through the use of Office 365 had captured management attention, the fixed user costs were extremely challenging and exceeded any current-year budget forecasts. It was also outside the company’s ability to achieve a realistic time-to-value outcome based on the proposed spend. 
ISG benchmarked the proposal price elements, identified opportunities, developed a negotiation strategy and gained the company’s approval. Then we executed negotiations with Microsoft focusing on clearly defined use cases and user profiles and a consumption-based assessment. ISG prioritized realistic pricing for users added during each contract quarter. We used aggressive pricing negotiation to afford the company a discounting threshold commensurate with its total spend and the magnitude of  the deal over its growth. ISG created a deal framework that resulted in the alignment of annual spend to the actual services consumed and in a material professional services investment by Microsoft to address the deployment velocity.
  • The company reduced spending by $65.1 million between the initial proposals and the version which closed. The final version contained higher level service offerings than were included in the opening proposals.  
  • It also received a strategic multi-year agreement that provided additional price protection going into a future 2021 renewal in order to accomplish a complete 5-year plan.  
  • It completed the transaction based upon budgets that did not account for the transformation expense of going to the Office 365 security services.
  • It retained a portion of its ecosystem which was not compatible with the Office 365 services on-premise.
Categories :
  • Consumer Packaged Goods
Article flags :
cpg packaged goods cpg packaged goods

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