$4B Global Food and Products Distributor Saves 44% and $490,000 / Year.

With our reputation of finding ways to save our enterprise client money, we received a call from a major international food and products distribution company.  Our client informed us that their 3 year, multi-million dollar global telecommunications contract was going to be up for renewal in a year.  Knowing how long the typical RFP process can take, our client wanted to start the process of creating a service inventory and formulating an RFP. Our client's goal was to have an RFP created with 3 months, get final responses back in 6 months and perform final negotiations before the end of the year to be prepared.  After a reviewing their current contractual commitments, current pricing and spend, Optelcon saw an opportunity. Using Optelcon's web based, I.T.E.M.S.tm Intelligent Total Expense Management Systems, Optelcon was able to feed all of our client's billing data directly from the web, into our inventory management tools, creating a detailed service inventory within 2 weeks.  Due to the complexities of carrier billing data and systems, this was the first time our client had seen such a complete inventory of services they were getting billed for.

Utilizing Optelcon's proven Rapid RFPtm database and systems, we were able to immediately match his services and spend against their current vendors best rates offered as well as the rates of 4 other competitors. It was quickly determined that due to the rapidly changing market pricing, similar sized clients were getting rates which were as much 50% below our clients current costs.  Due to our analysis, we identified that our client's current spend levels exceeded their contractually committed minimum revenue commitment.  After reviewing our negotiating strategy with our client, Optelcon went to work.  Optelcon's professional negotiators and proven negotiating techniques, combined with our real time market pricing data, were able to get our client's current vendor back to the table a year early.  After 3 weeks of Optelcon's negotiations and proven processes, our client's vendors came to the consensus that it was going to improve their relationship with our client and ultimately benefit them in the short and long term.  Within 3 more weeks, the Vendor came back with a new contract in which they agreed to reduce the clients costs by over 44% which resulted in a $490,000/year savings a full year ahead of schedule. With a net profit margin of approximately 5%, our savings had the equivalent bottom line impact as increasing sales by over $9,800,000.00.  These are the types of surprises that shareholders like to see.