IT Hardware Sourcing – Case Studies
- 1. IT Hardware Sourcing – Case Studies MehulVora
- 2. Results Accomplished / Business Impact Delivered ▪ $8 Billion company with HQ in Europe and presence in more than 200 countries. Leading producer of Candy & Confections The Client Background / Business Challenge Approach/ Solution Achieve cost savings over and above the rate refresh Evaluate the potential of having a single global provider Significantly reduce the total cost of ownership (Life-cycle costs as opposed to invoice costs) of computers and related spend Improve the quality and service levels from OEM’s and VAR’s Achieve pricing transparency in value – added partnerships (and contracts) with OEM’s and VAR’s Scope of the project: Desktop and IT Hardware The team conducted Market Analysis on Incumbent/New suppliers, Global/National/Regional Suppliers Conducted a sourcing and bidding strategy suitable for the client’s purchasing profiles. Current and future required resellers (VARs) were developed in detail on parameters such as Procurement, Asset Management, IMAC, Break – Fix, Help-Desk support both On/Off S LAN Desk-Side, LAN admin and support. A comprehensive RFP with details of IT Hardware specs, service requirements and performance metrics was developed Contractual bound and tier based rebate structure on total annual spend incorporated. The project delivered a saving of 40% on desktop computers Significantly reduced the total cost of ownership (life-cycle costs as opposed to invoice costs) of computers and related spend Improves the quality and service levels from OEM’s and VAR’s Achieve pricing transparency in value-added partnerships (and contracts) with OEM’s and VAR’s Tier based annual rebate on the total annual spend with the VAR. Availing preferred rates on Desktops from OEM on bulk purchases. Case Study : Desktop Sourcing
- 3. Results Accomplished / Business Impact Delivered ▪ $8 Billion company with HQ in Europe and presence in more than 200 countries. Leading producer of Candy & Confections The Client Background / Business Challenge Approach/ Solution Achieve cost savings over and above the rate refresh Shrinking product life-cycle Significantly reduce the total cost of ownership (Life-cycle costs as opposed to invoice costs) of computers and related spend Achieve pricing transparency in value – added partnerships (and contracts) with OEM’s and VAR’s Scope of the project: Personal Computers, Other IT Devices and Peripherals Total Spend: $10 MM The team conducted analysis on the market and subsequently defined the project scope to differentiate hardware, software and outsourced IT services The current and future required resellers (VARs) services and service levels were developed in detail The team developed a sourcing strategies 1). Discount off Reseller’s Prices 2). Fixed Price for Model Developed a comprehensive RFP with details of IT Hardware specs, service requirements, and performance metrics. Vendors were evaluated based on parameters such as Quality, Warranty, Service, Capabilities, Cost along with What-If analysis The project delivered a saving of $3.5 MM or 35% Significantly reduced the total cost of ownership (life-cycle costs as opposed to invoice costs) of computers and related spend Consolidated rogue spend on peripherals and other IT devices with selected VAR, thus controlling maverick spend and reducing multiplicity of suppliers on clients ERP system. Improves the quality and service levels from OEM’s and VAR’s Achieve pricing transparency in value-added partnerships (and contracts) with OEM’s and VAR’s Case Study : IT Hardware & Peripherals Sourcing