FTSE 30 CPG Client – IT Procurement

  • Mark Elkington
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Barkers were retained by a FTSE 30 CPG client to support its selection of Manufacturing Execution System (MES) software and a MES Systems Integrator and the subsequent software licensing and implementation contract negotiations. Due to severe time constraints, Barkers designed a parallel workstream approach that led to a 50% reduction in the time normally taken to run the overall process. Barkers were responsible for creating the RFI and RFP documents, running the RFI and RFP processes, supporting the customer in vendor selection, and the detailed negotiation of the software license and Systems Integrator contract. This resulted in a set of robust processes that delivered fully negotiated contracts to the agreed timescales.

The client had grown primarily through acquisition. As a result, all of its factories produce similar products, but use different specialised machines configured in many different ways. To monitor, track, document and control manufacturing operations consistently across all factories, the company decided to implement a Manufacturing Execution System (MES) in each of these factories. There were two significant challenges:

  • The client’s technically complex landscape had to be drafted into RFP documents in a clear and easy way for bidders to interpret.
  • There was a significant time challenge that would not allow for the software to be selected first and then the Systems Integrator to be selected after the software was known.

Key activities that the client required Barkers to deliver were:

  • Support the customer in determining its business requirements and the scope of work
  • Create RFI documents and run the RFI processes to assess the market for both software products and System Integrators
  • Create RFP documents and run the RFP and vendor selection processes for the software and Systems Integrator
  • Engage with and lead senior management throughout the process
  • Negotiate the Systems Integrator contract and commercials and the software costs and licensing.

Barkers provided two Senior Managing Consultants who specialise in IT Procurement to deliver the client’s requirements. Barkers designed an interlinked programme of work with two workstreams, one for software selection and contracting and one for System Integrator selection and contracting. The Systems Integrator workstream ran slightly behind the software workstream which enabled the key software decisions to inform the Systems Integrator decisions. This allowed for a 50% reduction in the time taken to run the process compared to running the software selection and Systems Integrator selection in series.

For the software selection and contracting workstream, Barkers delivered the following pieces of work:

  • Produce RFI documents and lead process
  • Lead reference calls and site visits
  • Identify licensing metrics for each product and support customer in gathering license volumetrics
  • Support customer in production of functional and non-functional requirements
  • Produce RFP documents and lead process
  • Analyse RFP responses and lead customer through vendor selection process
  • Negotiate cost and software licensing terms.

For the System Integrator selection and contracting workstream, Barkers delivered the following pieces of work:

  • Produce RFI documents and lead process to determine Systems Integrators with implementation experience of the multiple software products being investigated
  • Lead reference calls and site visits
  • Produce RFP documents and lead process
  • Analyse RFP responses and lead customer through vendor selection process
  • Negotiate Master Service Agreement and implementation contract

We are pleased to announce the following results:

  • A 50% reduction in the time normally taken to run the overall process
  • Robust processes that, whilst constrained by the aggressive deadlines, passed all customer audits
  • The processes were managed to time allowing key project deadlines, such as Board meetings, to be met
  • Clearly articulated best-practice software licensing terms agreed
  • Detailed Master Services Agreement and implementation contract agreed

Barkers: FTSE 30 CPG Client – IT Procurement Case Study

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Author: Mark Elkington