Elis is an international textile, hygiene and facilities services business with leading positions in the majority of the 28 countries across Europe and Latin America in which it operates. In the UK, Elis acquired the Berendsen plc business and has 30 sites.
Elis has a contract with Gamma Network Services for managed WAN and mobility services. By mid-2019, the end of those contracts was in sight and Elis began to formulate its strategy for the future of these business critical services.
To support Elis in developing this future strategy, in June, 2019, Elis engaged The Network Collective (TNC) to complete a Market Assessment of Elis’ services. The purpose of this Market Assessment was to analyse Elis’ current services, their alignment to Elis’ current and future technical and operational requirements, and to evaluate the competitiveness of the pricing compared to latest market rates.
TNC completed the Market Assessment process over the summer of 2019 and reported its results to Elis in September, 2019. TNC’s analysis clearly showed that Gamma remained well-suited to be Elis’ partner for network and mobility services in the future, but that elements of the solution could be improved to align with latest market trends, and there was significant opportunity to reduce the cost of the service to bring it into line with the most competitive pricing in the market.
Elis’ senior IT leadership team reviewed TNC’s findings and concluded that continuing the relationship with Gamma would be the most best route forwards, if Gamma’s commercial, technical, and operational solution could be brought into alignment with the best terms in the market, as identified through TNC’s Market Assessment process.
Therefore, Elis engaged TNC to work alongside Elis’ internal IT and procurement team to undertake a renegotiation process with Gamma. The clear objectives of this process were to engage constructively with Gamma, as a trusted partner, and seek a mutually-beneficial solution that delivered the technical and operational improvements and cost savings that Elis required, whilst enabling Gamma to secure the ongoing relationship with Elis.
Elis and TNC worked closely together over the next 12 weeks to execute this renegotiation process. The team prepared a detailed Statement of Elis’ Requirements, engaged with Gamma to articulate Elis’ requirements, and then reviewed Gamma’s proposals in detail. In particular, TNC used its Gap Analysis Proposal to compare Gamma’s renewal terms with the best terms available in the market, both to help drive the negotiations with Gamma to a successful conclusion, as well as to provide the insight to Elis’ senior leadership team that the terms secured were indeed market competitive.
Working together through the renegotiation process, Elis and TNC secured significant improvements and upgrades to Elis’ technical solution, contractual commitments to resolve long-standing operational issues, and substantial cost savings that brought Elis’ TCO into line with the most competitive pricing in the market.
In practical terms, engaging TNC significantly accelerated Elis’ process meaning it accessed the savings sooner, whilst significantly reducing the time, effort and resources Elis had to devote to the project. However, most critically, engaging TNC substantially increased the total cost savings Elis secured, generating a very healthy Return on Elis’ Investment in TNC, whilst building confidence within Elis’ senior leadership team that the results achieved were optimised.
“Working with TNC delivered great results for Elis. The TNC team was a pleasure to work with, they bringing valuable knowledge and insight to the table, and the project delivered a really healthy ROI. We will definitely work with TNC again!”
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