Case Study: Transforming IT Procurement/ Vendor Management in a major European Corporation

Client: Major European Corporation
Scope: ~€15M IT Vendor Spend | 50+ Vendors
Objective: Localise vendor oversight, identify savings, and improve procurement/ vendor governance with minimal disruption to operations.

The Challenge

Our client had a fragmented IT vendor landscape involving over 50 vendors and approximately €15 million in annual spend. With vendor management processes spread across various departments and limited centralised oversight, the company faced significant challenges with vendor engagements, potential rising costs on contract renewals and inconsistent vendor managment processes.

The goal was clear:
Bring vendor oversight back to a local company level—without impacting daily IT operations or vendor performance.

Our Approach

1. Full Contract Review & Cost Optimisation
We conducted a deep-dive review of all existing IT contracts. Savings opportunities were identified and captured, generating immediate budget impact through renegotiations, consolidations, and elimination of redundant services.

2. Vendor Segmentation & Rationalisation
Vendors were segmented based on spend levels and criticality to operations, helping the company prioritise strategic partnerships. We then implemented a vendor rationalisation process, reducing the number of active vendor engagements and simplifying procurement workflows.

3. Vendor Management Framework Development
To ensure long-term alignment and consistency, we developed a comprehensive vendor management framework. This framework established clear processes for vendor onboarding, performance management, and contract lifecycle oversight—aligned with both internal stakeholders and external vendor expectations.

4. Internal Stakeholder Engagement
We worked closely with internal teams, including procurement, IT, and finance, to define roles and responsibilities under the new model. Change management support ensured smooth adoption of the updated processes.

5. Governance & Strategic Vendor Cadence
Strategic vendor relationships were formalised with governance and cadence models, including regular reviews, KPIs, and executive-level touchpoints. This allowed the corporation to foster stronger partnerships with key vendors and ensure ongoing alignment with business objectives.

The Outcome

✅ 100% of contracts reviewed
✅ Significant cost savings identified and realised against budget
✅ Vendor count reduced, driving operational efficiency
✅ Clear internal ownership and accountability for vendor management
✅ Robust vendor governance model in place for ongoing oversight

By the end of the engagement, the corporation had a streamlined, cost-effective, and future-ready IT procurement model—with full visibility, stronger control, and deeper strategic relationships.

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