Case Study

Transforming SD-WAN Underlay to Internet First

Problem

Over the past decade, TC2 helped this B2B distribution, logistics services and supply chain solutions provider turn network sourcing into a more strategic discipline. In its most recent procurement cycle, that work set up the client to pursue a global Internet First transformation for the transport underlay supporting its SD-WAN-enabled network.

The opportunity was far larger than a routine circuit refresh. The client wanted to evaluate multiple access technologies, rethink supplier mix, and improve bandwidth while preserving the economics needed to support the transformation. Just as important, the program had to build on commercial flexibility negotiated in prior deal cycles and make full use of the leverage created through disciplined management of incumbent supplier relationships.

"Long-term sourcing value is created before the next RFP begins. When commercial flexibility is protected over time, the business has more room to pursue real transformation when the moment is right."
- Keith Cook, Director

Solution

TC2 developed and executed the global Internet First and digital transformation strategy, then structured a competitive RFP process around the transport underlay for the client’s SD-WAN environment. The analysis went well beyond price. We modeled DIA, wired broadband, and fixed wireless access options, including diversity requirements between dual connections at each site, and assessed the cost and benefit of deploying higher bandwidth under different technology mixes.

We also ran detailed supplier award scenarios to test the financial trade-offs between using more or fewer suppliers and between staying with incumbents or transitioning sites to new providers. That scenario work helped the client compare technology and award options in a practical way and move forward with a sourcing strategy that supported both the business case and the broader transformation goals.

TC2 then supported contract negotiations across the awarded suppliers to help ensure that the commercial and operational benefits captured through the RFP process were reflected in the final agreements. In parallel, financial negotiations with the primary incumbent secured immediate day-one savings on the existing network spend, which strengthened the economics of the transformation as the client migrated toward the new network solution.

Results

>50%
Cost reduction from the Internet First RFP
2.5x
Increase in network bandwidth
$1M
Day-one annualized savings

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