Project:

Core Software Tendering and Negotiation

Scope:

A European cruise company relied on an ageing mainframe for its business critical reservations system. Following a strategic review, they decided to source a package-based replacement via market tender.

A niche US software vendor was chosen, with implementation by a ‘big four' consultancy and integration from 10 local companies.

Turnstone provided all commercial support, including:-

1. Initiation and management of the strategic review
2. Management of the tendering process
3. Negotiation of contracts for all 12 vendors
4. Provision of advice on changes to the IT architecture
5. Management of all vendors during the project, including change management and cost control

Key Business Benefits:

 

Supplier Negotiations

• €2.2m saved through software supplier negotiations (43%).
• €1.4m saved through consultancy supplier negotiations (20%).
• Contracts negotiated to include key IT requirement detail and performance related payments
• Costs were controlled and constantly visible - overrun avoided
• Better supplier performance through strong relationships

Vendor Management

• Ongoing savings of €250k from negotiating preferred rates
• Cost tracking and forecasting a key feed to project planning and budget

Project Assurance

• Board focused on key decision points through monthly review meetings
• Project was a key part of the overall business strategy
• Emphasis of key issues such as integration ensured early resolution to avoid delay

Strategic Advisory

• ERP deployment to simplify IT footprint
• Post go-live organisation structure delivered to ensure ongoing success of project

The Turnstone Approach:

 

Supplier Negotiations and Vendor Management
Turnstone created a contract governance structure, providing contract templates and negotiating them through to final signature alongside the internal legal team.

Relationships were built with all suppliers to resolve problems rapidly and focus teams on working together to keep project on budget and time.

Project Assurance and Strategic Advisory
Assessment of company architecture and culture enabled recommendations and ongoing assurance delivered those recommendations

Eija Rasanen, Silja Line
"Turnstone proved invaluable to the project. They kept our supplier costs down and reduced the admin hassle. They saved us €400k of consultant mandays by negotiating a rigorous contract with our supplier."

Steven Robson, CFO, Silja Line
"We were able to negotiate pretty good prices and terms ourselves, however we've been able to secure better prices and terms having deployed Turnstone. As a result we can control our suppliers better"