A UK High Street client with over 200 locations and a growing online presence. The project involved working collaboratively with a clients HR department and key stakeholders to address proposed price increase from key system suppliers.
Client Overview
As one of the UK’s largest specialist retailers, bringing their expertise and knowledge to the high street in over 200 locations. Supported by vigorous online growth, their business continues to grow.
Having been founded in 1980’s, the company has grown organically and through acquisitions and now employs more than 1,400 people across the business.
Our Approach
The People Director and HR department were facing increased costs from suppliers across two key systems. The first system was their Learning Management System (LMS) and the second was their Payroll system. With a set HR budget and a growing staff population to cater for, our client was keen to remain with their current LMS supplier as they were providing a good product and service.
The decision to move Payroll to a new supplier had been made and the preferred new supplier & product identified. They were very aware of the need to assess the market and achieve the best value for money possible, whilst remaining within their budget. Our experienced consultants and industry knowledge allowed us to determine the market value for the services offered. From this we concluded that better rates where available.
Ebit were then able to present this back to the client and agree on the best route forward.
Results
Ebit ran a successful benchmarking activity using its retail-focused market knowledge and identified that the costs were higher than the current market.The change of supplier also uncovered opportunities to create 9% savings against the existing budget. Over the course of the 3 year contract these savings are expected to exceed £200,000.
We were asked to challenge the incumbent and the new supplier’s proposal. Our specialist consultant already had excellent relationships with both the suppliers in question and was able to renegotiate the costs across both projects.With the LMS system costs renegotiated to remain unchanged from last year the client has avoided a 13.3% increase in costs as originally proposed. This is a fixed price for 2 years.
The Payroll & HRIS system costs were reduced by 7% from the proposed new rates. This is as a fixed price for 3 years. Both systems will continue to deliver value to the business and the client is able to work with their preferred suppliers. By working closely with the stakeholders Ebit were able to ensure that they have achieved maximum benefit from the negotiations. This has proven so successful that they have already approached us with 2 new projects!
- Savings are expected to exceed £200,000.
- The Payroll & HRIS system costs were reduced by 7%
- Avoided a 13.3% increase in costs