The BackgroundManufactures quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, the company’s products are sold to builders and homeowners through building materials distributors and dealers and retail home centers.
The ChallengesAs a leading manufacturer in its industry, Cloud/Disaster Recovery services are mission critical. Furthermore, the three-year agreement with the current vendor was due to expire in three months. Advocate’s initial assessment indicated that the current rates were well above market and could be reduced, resulting in significant cost savings. Advocate’s assessment also indicated that the services purchased could be “right-sized” to more economically meet its needs.
The SolutionAdvocate recommended a streamlined competitive sourcing process to drive better rates, terms and conditions with the incumbent vendor. Advocate conducted a direct negotiation with the long-term, incumbent provider and was prepared to immediately issue an RFP if the incumbent did not respond well, as measured against Advocate’s industry benchmarks. After the benchmark analysis and contract details were competitively assessed, Advocate led contract negotiations to secure a renewed agreement with considerably lower rates.
We did not even have this opportunity on our radar (until Advocate identified it). The opportunity (to save) has been staggering. This has been a good experience for all of us.
- Total project was completed in 9 weeks.
- The new agreement with the incumbent
vendor generated a 24% cost reduction
on core services without the risk and cost
of migrating to a new vendor.
- Advocate delivered an annual project
ROI of 15:1.
The new agreement with the incumbent vendor generated a 24% savings on core Cloud/DR services without the risk and cost of migrating to a new vendor.