Recovering $5M in Network Spend
Problem
A large US retailer engaged TC2 to perform a contract compliance and optimization review across network spend with seven key suppliers. The initial objective was straightforward: identify where spend could be brought back under control and determine whether negotiated benefits were actually showing up in day-to-day billing.
As the work progressed, it became clear that savings would not come from a single lever. Some opportunities were tied to inventory alignment, including services that were no longer in use or remained active at closed locations. Others required targeted negotiations with incumbent suppliers where rates and terms had drifted far away from market.
Solution
TC2 structured the engagement around two connected workstreams. First, we worked through the underlying inventory and billing records to identify services that should be disconnected or otherwise optimized. Second, we supported targeted sole-source, directed negotiations with incumbent suppliers, using TC2 benchmarking to pinpoint where pricing had fallen out of line and where negotiated corrections would have the greatest impact.
That approach allowed the client to pursue both operational clean-up and supplier rate reduction savings at the same time. Across the multi-supplier portfolio, TC2 delivered annually recurring savings that significantly and permanently reduced our client’s cost base.