Challenge
In Quarter 4 of 2018 Musgrave engaged Peru Consulting to lead them through the re-tendering of the Datacentre, Infrastructure Support, Managed Print, Service Desk and End User Computing services.
These services had previously been delivered under a single monolithic contract with a single partner for many years and had been subject to numerous changes throughout its tenure.
The existing contract was not seen to be commercially or financially transparent and service delivery quality was perceived as being variable
Solution
Robust Sourcing Process
Peru led the end to end sourcing process:
Strategic Assessment: Assessment of operational risk, service demand, cost baseline, business strategy alignment and initial Market alignment to drive requirements
RFP & Selection: Developing and publishing the RFP, leading the evaluation process of responses against agreed criteria. Peru achieved approval of the recommended supplier solutions from senior executives and board members through focussed stakeholder management
Contracting: Negotiating the detail of the contracts with the chosen suppliers gaining internal and external approval
Outcome
Service Driven Contracts
- Service focussed contracts were successfully negotiated with the 3 future-state suppliers
- Service Commencement dates avoided Musgrave’s critical trading period
- A robust, contracted, governance process was put in place to monitor value, service delivery and build relationships governed through a Contract Management Office setup by Peru
- Contract deliverables saw improved service levels from the previous contract
- Innovation, technology investment funds and resource pools were contracted to aid achievement of cost and service efficiencies
Value
Market Aligned End-State
Ensured costs and commitments were fully understood and delivered service price points in line with, or better, than market best value
Provided contracts with predictable exit and termination for convenience mechanism to provide optimal flexibility for a changing business
Ensured the final solution for each service that was aligned to the Musgrave business strategy
Demonstrated a robust, transparent sourcing process
Testimonial
“Musgrave engaged Peru to support a complex procurement exercise to transition from a single delivery model for our IT services to a multi supplier model. Peru successfully worked with Musgrave across the full lifecycle, leveraging their deep experience and demonstrating dedication and willingness to ‘roll their sleeves up’ to deliver a great result."
Dave O’Flynn, Group Chief Financial Officer, Musgrave
