Advocate IT assessments lowers manufacturer’s costs 24%

The Background

Manufactures 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.

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The Challenges

As 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.

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The Solution

Advocate 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.

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The Result

• 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.