Case Study: Delivering £10m Value on a Complex FTSE 100 ERP Programme

23 Feb

Posted by: Mark Elkington

Category: Case Studies

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Large-scale ERP transformations carry significant commercial, delivery and governance risk. Barkers were engaged to ensure a robust, auditable procurement process that delivered both speed and substantial value.

Following a successful engagement supporting the client’s purchase of new ERP software, Barkers were retained to manage the selection of an ERP Systems Integration partner and lead the subsequent contract negotiation with the successful vendor.

Barkers were responsible for developing the RFP documentation, running the RFP and BAFO processes, supporting vendor selection, and negotiating a detailed contract for the delivery of systems integration services. The engagement delivered £10m of savings against budget, completed the selection process within agreed timescales, and resulted in a robust contract defining circa 400 individual deliverables. All processes were subject to both internal and external audits.

Challenge

The client was undertaking a major business transformation, moving from multiple ERP systems to a single, standardised ERP platform.

Following a successful software selection process, the client required expert support to select and contract with a Systems Integration vendor. Specifically, the client needed IT procurement capability to:

Create RFP documentation and run a complex vendor selection process for a large-scale IT transformation programme.
Engage with and lead senior stakeholders throughout the process.
Negotiate detailed deliverables and commercials with a Tier 1 service provider.

The vendor selection and contracting activity had to be completed to an aggressive timeline, requiring a flexible yet controlled approach to procurement design and delivery. Given the value and strategic importance of the contract, the process also needed to be sufficiently robust to withstand internal and external audit scrutiny.

Solution

Barkers provided a Delivery Director specialising in IT Procurement to lead the engagement and deliver the client’s requirements.

To meet the aggressive timescales, a customised procurement approach was developed. A detailed plan was created, key risks and trade-offs were identified, and mitigations were agreed where possible. This approach was reviewed and approved by the client and their auditors.

The RFP documentation was developed using Barkers’ extensive knowledge of IT transformation programmes, combined with close collaboration with the client’s transformation team to define technical requirements, governance standards and delivery expectations.

A shortlist of suitable vendors was identified and pre-qualified. Barkers then ran a structured vendor engagement programme, including due diligence workshops, reference calls, and multiple rounds of vendor presentations. These sessions enabled vendors to present their initial approaches, receive feedback, and submit final positions as part of a formal BAFO process.

Barkers managed the vendor evaluation process end-to-end, providing detailed analysis of submissions and facilitating internal workshops to agree selection criteria and assess bids consistently. Support was also provided for Board papers and wider governance requirements.

Following vendor selection, Barkers drafted the initial contract and led the negotiation process, agreeing all commercial terms and detailed technical deliverables with the successful provider.

Results

The engagement delivered the following outcomes:

A £10m saving against budget achieved through a competitive bidding and BAFO process.
A robust, auditable procurement process that successfully passed both internal and external audits.
Delivery to agreed timelines, enabling key milestones such as Board approvals to be met and the vendor to mobilise as planned.
A highly detailed contract defining circa 400 deliverables, with pricing broken down to 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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Delivering £10m Value on a Complex FTSE 100 ERP Programme – Case Study

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Tags: FMCG Manufacturing - Case Study, Mark Elkington, Technology Procurement - Case Studies

Author: Mark Elkington