Project:

Arcadia Group

Scope:

The client wished to replace multiple legacy systems with a single ERP suite. A tender was undertaken to select the preferred SI partner. 

To minimise the risk of delay, cost rise and scope creep, Turnstone were asked to undertake a commercial assessment of bidder responses.
This was focussed on the commercial / non-technical area of the bid responses, to ensure a 360 degree assessment.

Key Business Benefits:

 

Cost Savings:  £3m savings identified from the SI responses alone, with further structured negotiations recommened to reduce one off and ongoing support costs

 

Commercial benefits:

1.    Cost benchmark information provided for SI partners, providing levers for further negotiation

2.    Areas of commercial risk identified so that these can be addressed during negotiations

3.    Key terms & conditions provided for negotiation into the final contract

 

The Turnstone Approach:

Turnstone undertook a detailed review of both ERP suppliers’ proposed costs and the SI partners’ tender responses.  We benchmarked all licence, support and implementation costs against the nearest market alternatives.

 

We provided detailed recommendations on commercial negotiation points to be utilised, and contractual clauses to be included to reduce the risk to the client. 

“Turnstone has provided a thorough commercial assessment of all supplier responses for this business critical software implementation. 

 

They have identified the keys risks in each supplier response and provided a negotiation strategy to mitigate them.”

 

Andrew Clarke