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Results - Cost reduction in Australian mobile phone company

Context / scope of project : This mobile phone company was suffering a profit squeeze as a result of prices falling in the market and a rise in costs. Managers had seen PIP’s procurement work in other companies and brought PIP in with a brief to reduce its procured spend and ensure its people could sustain and manage these changes going forward.

PIP and client achieved:
4.5% reduction in total spend, 24% saving on costs tackled by PIP
Reduced inbound call centre costs by 55%

Reduced outbound call centre costs by 31%

Reduced cost of leased communications infrastructure by 26%

Reduced bill printing costs by 16%

Reduced supply chain management costs by 30%
Identified 46% IT hardware & OS maintenance & support cost saving
Identified 8% marketing collateral cost saving opportunity
Identified 1.7% of net cost saving for handset purchases


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What we did:

Total Cost of Ownership – “where’s the money?”

Systematic review of drivers of spend for priority items

Summary of the competitive landscape for priority items
Negotiation strategy
Negotiations to completion


 
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