Case Study

Unlocking Value Through a Mid-Term Rate Review

Problem

A Fortune 100 enterprise was midway through a global network agreement with a key incumbent supplier representing over $10 million in annual spend. Although the client had recently completed a global WAN procurement, pricing had drifted away from the market, and an earlier attempt to improve the deal through a contract extension did not produce a worthwhile outcome. 

The supplier’s proposal offered limited savings and came with commercial tradeoffs the client did not want to accept. With a contractual rate review approaching, the client needed a clear strategy to reset pricing without extending term, increasing commitments, or giving up flexibility elsewhere in the agreement.

"A well-run rate review process can create meaningful leverage even without a full procurement, but only when customer negotiation positions are grounded in market evidence and clearly presented to the supplier through a rigorous and structured negotiation."
- Keith Cook, Director

Solution

TC2 developed a rate review strategy built on detailed market benchmarking and a clear understanding of the client’s contractual position. We carefully analyzed the $10M+ in annual services, comparing the incumbent’s pricing to current market conditions and to competitive alternatives. That work showed a clear and credible gap to market and gave the client a clear basis for pushing back.

From there, TC2 defined the negotiation position and structured the engagement with the supplier around a simple principle: the client was seeking real price improvement without trading away value elsewhere. The negotiation strategy reinforced that there would be no additional term, no added revenue commitment, and no new concessions in exchange for savings.

TC2 also drew on prior RFP results and competitive benchmarks to support the client’s position and treated the rate review as a pass-or-fail moment for the supplier. That combination of market evidence, contractual discipline, and a firm commercial stance helped the client create pressure for a better outcome without having to reopen a full sourcing event.

Results

$1.4M
Annual savings via rate review
$10M
Pre-project spend, globally
1K
Global network circuits in scope

Stay Up to Date

Receive our bi-weekly email newsletter that provides regular insights from TC2 and LB3 on what really matters to enterprise buyers navigating today’s technology and sourcing decisions.
Name(Required)