AMD Consulting

A US based software product company significantly reduced its global Event Management spend by applying strategic sourcing framework and process.

Overview
A large part of company’s multi-million dollars external spend was on Event Management category that was discovered during level-1 spend diagnostics. This provided an opportunity to reduce it structurally.
Challenges
  • Highly fragmented nature of event management across business units.
  • High variability in consumption pattern across business units and geographies.
  • Sub-optimal performance and experience with incumbent service providers.
Solutions
A classic Strategic Sourcing framework was applied to uncover several spend reduction opportunities, both on supply as well as on demand side. Various work streams included –
  • Spend Mapping Identified key areas of improvement through a detailed spend mapping exercise.
  • Supply Market Assesment Through a rigorous sourcing process, which included an expansive market assessment for key high performing players as well as current best practices, a set of event management companies was shortlisted.
  • Operational Integration Project management was key to successful implementation making sure of seamless integration across various elements and enhanced overall output.
  • Supplier Performance Management A special emphasis was placed on balancing the total cost with overall event output and experience through performance SLAs.
Results
The company not only reduced supplier unit pricing but also optimized internal consumption down, thereby significantly reducing overall category spend.

Key outcomes of this exercise included –
  • 20% reduction in TCO just based on supply side optimization and negotiations.
  • Transparent pricing model eliminated or largely minimized any hidden or pass through costs.
  • High performing mix of service providers raised overall performance bar.
  • Opportunity to further optimize the cost by actual demand management during event execution.
Strategic Sourcing can trigger new ways of doing business

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