Strategic Sourcing

The client.

A $3.5 billion professional services firm.

The business issue.

This management consulting and systems integration firm with more 16,000 employees in 39 countries was seeking to reduce its selling, general and administrative expenses cost structure. In doing so, it faced several key challenges:

• Significant change, including rapid executive turnover, lay-offs and financial statement challenges.
• A need to achieve significant savings in a compressed timeframe with minimal impact to its client-facing consultants.
• Global coordination across the company's major geographies.

The solution.

Members of The Claro Group assisted with an initial assessment and then rapid implementation of the opportunities identified.

The project team assessed corporate functions, processes and staff by:

• Assembling a team of 20 consultants across the globe.
• Analyzing the sales, administrative and other cost of service expense pools.
• Identifying and documenting the current state and establishing benchmarks to market rates and leading practices.
• Developing a list of prioritized savings opportunities and presenting to the company's executive committee.

Then, it implemented steps to pursue the various cost-saving opportunities identified during the review by:

• Assembling a global team of more than 50 consultants and client personnel.
• Providing project management in coordination with the client's Program Management Office.
• Organizing sub-teams to pursue various opportunities and facilitating enhanced coordination between consulting and corporate function client team members.
• Creating and delivering executive committee meeting presentations.
• Developing an online employee education tool.

The results.

This approach enabled the company to identify $37 million in annual cost reduction opportunities on an expense pool of approximately $250 million. As a result, it implemented strategies to capitalize on various cost-saving opportunities, including travel (airlines, rental car, T&E card), employee benefits and human resources.