FTSE100 CPG Client – IT Procurement

  • Mark Elkington
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Following a successful engagement to support the client’s purchase of new ERP software, Barkers were retained to support the selection of an ERP Systems Integration partner and the subsequent contract negotiation with the successful vendor. Barkers were responsible for creating the RFP documents, running the RFP and BAFO processes, supporting the client in selecting the vendor and the detailed negotiation of a contract for delivery of the systems integration services. This resulted in £10m of savings against budget, a selection process completed to agreed timescales and a robust contract detailing circa 400 individual deliverables. All processes were subject to both internal and external audits.

The client was undertaking an overall business transformation, moving from multiple different ERP systems to a single ERP system.

Following a successful software selection process, the client required support to select and contract with a Systems Integration vendor.

The client required IT Procurement resource to support:

  • Creating RFP documents and running the RFP and vendor selection processes for a largescale IT Transformation Programme
  • Engaging with and leading senior management throughout the process
  • Negotiating detailed deliverables and commercials with a Tier 1 Service Provider.

The vendor selection and contracting needed to take place within an aggressive timescale, requiring a flexible approach to the procurement process design and delivery. Owing to the value of the contract and its strategic importance, the process had to be robust in order to withstand internal and external audits.

Barkers provided a Delivery Director who specialises in IT Procurement to deliver the client’s requirements.

The aggressive timescale required a customised approach to the processes. A plan was developed, risks were assessed and trade-off highlighted and mitigations were determined where possible. This was then agreed with the client and their auditors.

The RFP document was built using a combination of Barkers’ knowledge base of IT Transformation bids and by working extensively with the client’s transformation team to determine their specific technical needs and governance requirements.

Suitable vendors were approached and pre-validated. Barkers ran a series of workshops with the bidding vendors to enable them to carry out due-diligence, a series of reference calls for each vendor, a series of presentations for each vendor to present an initial view of their approach and gain feedback and then a series of presentations for each vendor to present their final position following submission of their RFP. A BAFO process then followed this.

Barkers ran the client’s vendor selection process providing analysis of the submitted bids and running a series of internal meetings to agree selection criteria and then assess the bids against the agreed criteria. Barkers supported creation of Board packs and other internal governance requirements.

Following selection of the vendor, Barkers created the first draft contract and ran the negotiation process to agree all commercial terms and technical deliverables with the vendor.

We are pleased to announce the following results:

  • The competitive bidding and BAFO process yielded a £10m saving against budget
  • The defined processes, whilst constrained by aggressive deadlines, were robust and passed both internal and external audits
  • The processes were managed to time allowing key project deadlines, such as Board meetings, to be met and the vendor to begin work to plan
  • The contract was negotiated to a significant level of detail, defining circa 400 deliverables and breaking down pricing to an individual resource level

“We have worked with Barkers on a number of high profile and complex negotiations and RFPs in recent years. Their support on this project to help us achieve a robust and optimised commercial position in challenging timescales was invaluable, and is consistent with the quality of work they have performed for us on other similar projects. We have retained them for commercial assurance on this project.”

Head of Indirect Procurement, FTSE100 CPG company

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Author: Mark Elkington
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