Pharmaceutical Client – Procurement as a service

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The client required support with IT Contract negotiation and preparation for a new IT Contract Management System which would revolutionise their ways of working.

The project was two-fold; to negotiate three crucial IT contracts – one of which was a re-negotiation with an incumbent supplier, and two of which that required negotiation and onboarding of new vendors. Secondly, the client recognised that their IT Contract Management System was immature and were seeking to audit their current IT contracts to ensure accuracy of data and consistency of process. 

Barkers were tasked with supporting the client to reduce costs through addressing three key areas of spend within their IT contracts. The challenge was to:

  • successfully re-negotiate one contract with an existing vendor to secure a reduction in costs and enhanced terms 
  • to negotiate new deals with two IT suppliers at favourable rates that would facilitate a reduction in outlay for the client. 

In addition, the client required support with a project to audit the current IT contracts in existence. The scheme involved:

  • cross-checking approximately 800 IT contracts within the client’s online contract management system 
  • extracting and reporting on core data including supplier details, contract value, renewal dates, stakeholder information and more 
  • obtaining ‘missing’ information 
  • accurately documenting key data to ensure that the IT contracts were presented consistently 
  • keeping an additional offline data log of new contracts to help inform the upcoming IT Contract Management System of where contract gaps exist. 

Barkers enhanced the capacity of the client team by providing dedicated resource to progress their ambitions for a fit-for-purpose IT Contract Management System, whilst also re-negotiating a deal with a challenging incumbent vendor and negotiating with and onboarding, two new suppliers.

Contract Negotiation

Barkers used their significant experience within IT contract negotiation to implement a best practice approach to the contract negotiation required and to source favourable terms for the client when establishing new contracts. These negotiations focused on best-fit for the business, cost reduction and risk minimisation. 

 IT Contract Management Project

A robust and methodical process was put in place to review existing IT contracts, enabling the Barkers team to extract core data, and successfully identify missing data through a thorough cross-checking process. The repeatable process ensured speed and accuracy of the project and resulted in an organised output that the client could use as a foundation to quickly and easily transfer data into their new IT Contract Management solution.

Weekly meetings were held with key stakeholders to ensure that the project progressed at pace, with an Actions Tracker keeping all informed of key activity with target deadlines. 

Barkes are delighted to announce a successful renegotiation of a key IT contract which has resulted in a reduction in costs whilst maintaining favourable terms.

Barkers also negotiated two new deals for the client, securing cost reduction whilst future-proofing the organisation against IT risk.

As part of the IT Contract Management project, over 790 contracts were thoroughly reviewed and cross-checked, providing data confidence as contracts moved over into a new Contract Management System. This Contract Management System will revolutionise the way in which the client processes, stores and documents IT contracts, ensuring consistency and accuracy of reporting moving forwards.

All outputs were performed within the agreed timescales and to exceptionally high standards. 

Barkers: Pharmaceutical Client – Procurement as a service Case Study

Achieve more through a Procurement Managed service

Author: Connell Forbes