A global recruitment and career management company was experiencing rapidly escalating fees and costs while at the same time undergoing internal transformation and restructuring. As part of a company-wide initiative to reduce costs, the company retained Harbor to develop a strategy and program to facilitate savings while aligning future vendor relationships and spending with the business’s evolving priorities.

The client engaged Harbor to assess its vendor relationships and facilitate savings utilizing strategic sourcing methodologies, consumption/demand management, post-implementation monitoring, and other cost avoidance techniques.

The client achieved significant savings across various departments and functional areas, estimated to be over $8 million over three years.

A three-prong strategic approach

The Harbor engagement team collaborated with the client to develop and implement savings strategies across a number of areas, including technology (IT hardware, telecommunications, IT software and services), facilities (office-related products, records management and courier services) and market data and other spend categories as applicable.

Harbor and the client agreed upon a three-phase strategic approach for the execution of these expense management and third-party vendor sourcing efforts.

  • Data gathering and analysis: Harbor facilitated introductory meetings and engaged with 75+ stakeholders and vendors to gather and analyze data. Harbor assessed the historical relationship with each vendor and its scope, reviewing both contracts and spending and also looked for incremental synergies between the client and its parent company.
  • Opportunity assessment and strategy formulation: Leveraging this data analysis along with its extensive experience and market intelligence, Harbor developed savings opportunity projections, outlining for the client the current state, potential opportunities and strategic plans for achieving desired goals.
  • Implementation and savings assessment: Harbor then worked with stakeholders to develop an action plan jointly. It prepared negotiation tools and materials and partnered with the client to conduct strategic negotiations with vendors. Additionally, it facilitated discussions with client stakeholders on topics including proposal analyses, evaluation of options, strategic recommendations and defined next steps.

After the execution of the new or revised vendor agreements, Harbor conducted routine audits to monitor post-implementation compliance and savings.

Significant savings accrued

Harbor and the client collaboratively achieved significant savings across various departments and functional areas, estimated to be over $8 million over three years.

Additionally, through improved alignment and prioritization, the client saw sustainable improvements in the following areas:

  • Implementation: Increased level of integration with client’s parent company, leveraging more extensive supplier relationships to realize synergies and maximize savings.
  • Collaboration: Inter-departmental collaboration, resulting in increased efficiency, ease of communication and knowledge-sharing among stakeholders, beginning with the initial assessment and continuing through the entire process.
  • Optimization: Significant cost avoidance by right-sizing when applicable, based on evaluation of service utilization.
  • Comprehensiveness: All-encompassing service across a wide variety of requests through an active role in managing procurement efforts of all magnitudes.

Results and benefits

As a result of the cost reduction measures the company implemented, it accrued:

  • $3.4m savings in first 12 months
  • $8.2m estimated savings over three years
  • 326% return on investment across all areas
  • This engagement was executed by HBR Consulting, one of the companies that merged to form Harbor.