Cost Reduction Programme - Investment Services Firm

Client Challenge:

  • Following M&A activity, the client sought a significant cost reduction through consolidating their third-party spend across the newly combined business
  • There was limited procurement capacity and capability and an inconsistent approach to managing and tracking third party spend and limited oversight of strategic vendors
  • The client required extensive supplier rationalisation to be realised, whilst ensuring the retained supply base contracts were suitable for the new combined entity

What we did:

  •  The implementation of a new governance framework to track all 3rd party spend and benefit opportunities
  •  A detailed breakdown and analysis of spend by category from the accounts payable and invoice data
  •  Provided procurement and vendor management practitioners with deep expertise to review and renegotiate contracts with existing suppliers
  •  Facilitated business focused workshops to create detailed plans for specific categories such as Market Data, Facilities Management, Merchant Services, Travel Polices and Regulatory Fees
  •  Created a prioritised delivery roadmap to deliver quick-wins and longer term strategic opportunities
  •  Developed TOM model proposal to achieve the above

Outcomes:

  •  In 8 weeks, TORI’s procurement practitioners identified a £2.9m pipeline worth of savings, delivering £1.25m of this within the engagement term.
  •  Selected highlights include:
    • Facilities Management contract was reviewed in detail. Renegotiated contract delivered savings of £241k
    • A full review of the Merchant Services with opportunities to work with existing supplier to deliver £244k
    • Termination of Processing Services and investment research contracts saving £735k
    • The development of a Market Data roadmap with £990k of identified savings

 

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