Case Study

Contract Fusion: Optimizing Vendor Relationships at a Merged Technology Company

FTI Technology helped a newly combined technology company maximize value in its vendor contract portfolio, saving millions of dollars, and solidifying operations as the companies integrated.

Our Role

FTI Technology’s contract solutions experts reviewed agreements with 600 vendors, analyzing terms and projected spend data relating to them. The team also engaged finance and procurement stakeholders at the company to understand the course of performance with each supplier and the market dynamics for products and services. With this information, FTI Technology created “baseball cards” for each vendor, giving a clear picture of the realities of the commercial relationship, expected costs and value associated with each contract.

Additionally, the team provided recommendations for handling each contract to drive and optimize business value. Highlights included contracts suitable for termination, including instances of multiple contracts for the same product or service and contracts with particularly unfavorable terms for the business. FTI Technology team flagged opportunities for contract consolidation (e.g., contracts across different products but with the same supplier) or renegotiations (e.g., contracts with ”most favored customer” provisions that could be used to reduce pricing based on benchmarks. Any key contracts that were approaching renewal were identified for extension to maintain operations without business disruption.

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