At a glance


  • A critical application 600 users
  • €3.6m saved on software purchase
  • €250k further saved through ongoing vendor management
 
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Project:

Core Software Selection and Negotiation

Client:

Silja Line

Silja Line is a Finnish cruise-ferry brand for car and passenger traffic between Finland and Sweden, transporting about three million passengers and 200,000 cars every year.

Scope:

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

During implementation, managing many vendors was a major challenge, with niche US software vendors, one of the ‘big four’ SI partners and several local integrators.

The project timescales were critical with little room for slippage.
High quality delivery was crucial, as the system would form the backbone of the company.

Key Business Benefits:

 

Cost savings:

  • €2.2m through supplier negotiations (43%)
  • €1.4m saved through consultancy supplier negotiations (20%)
  • Ongoing savings of €250k from SI partners through negotiating day rates

Commercial benefits:

Contracts included performance related payments
Costs were controlled and constantly visible – overrun avoided
Better supplier performance through strong relationships
Cost tracking and forecasting a key feed to project planning and budget
Board focused on key decision points through monthly review meetings

The Turnstone Approach:

Turnstone provided all commercial support, including:

  • Management of the tendering process for the new software
  • Negotiation of contracts for all 12 vendors
  • Commercial Management of vendors during the implementation to avoid scope creep
  • Creation of a contract governance structure, providing model contracts and contract negotiation
  • Building relationships with all suppliers to resolve problems rapidly

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"