Summary
Deecon was engaged by Motorola to conduct a Value for Money (VfM) Analysis of an existing supplier managed service contract. Through an extensive benchmarking exercise and the development of a bottom-up Market Value Pricing Model, Deecon established benchmark rates for future contract needs. The analysis informed a comprehensive negotiation strategy, supporting Motorola in identifying opportunities for additional value from the existing contract.
The Requirement
Deecon was engaged by Motorola to conduct a Value for Money Analysis of an existing supplier managed service contract.
The Solution
Deecon delivered the engagement through a structured three-phase approach comprising mobilisation, research and data collection, strategy formalisation and negotiation.
During the mobilisation phase, Deecon aligned with stakeholders on the scope of the research and the timeline of the assessment and established the approach for both the quantitative and qualitative analysis. Deecon aligned requirements and objectives of the works.
During the research and data collection phase, Deecon reviewed the documentation in the specification, analysed and developed key metrics and assumptions, assessed relevant data sources, collected supporting data, and researched the factors influencing assumptions. This was supported by stakeholder engagement, document reviews, workshops, and interviews to gather additional information and insights. Deecon ensured that its review of core analytics such as time on site and callout patterns aligned with industry best practice and market experience. These findings were consolidated into a comprehensive assessment report. This was supported by interim reviews to validate progress and ensure alignment with project objectives.
Following report finalisation and presentation, Deecon and Motorola collaborated to develop a structured negotiation strategy to ensure the supplier was brought to market benchmark. Deecon modelled a number of negotiation scenarios to understand the cost-benefit of each approach given the upcoming deadline.
Deecon led the negotiations on behalf of Motorola, engaging in multiple rounds of dialogue and submissions with the supplier. Using live analytics, Deecon produced feedback in real time to ensure momentum remained in Motorola’s favour. After multiple rounds of negotiation, Motorola and the supplier were able to agree commercial terms.
The Results
Identified that the supplier’s National Annual Total Cost was +10% above the benchmark
Collaborated with the client to ensure that alignment with the benchmark would generate substantial and sustainable savings
Commercial agreement reached to ensure alignment to national benchmark