skip to Main Content
The Business Challenge:
- A contract between an existing supplier and a government department required re-negotiation. This involved sensitive issues as the contract was subject to public scrutiny
- The number of transactions managed under the contract had increased two fold beyond minimal contractual requirements (2 million per annum)
- A desire to achieve a unit price reduction was set as the objective
Approach adopted by Direct Focus
Phase 1: Research of unit costs
- DirectFocus implemented a detailed and independent evaluation of unit prices under the existing contract
- Direct Focus developed a model that allowed the evaluation of contract costs at different indicative price points
Phase 2: Re-negotiation of contract
- Direct Focus assisted its customer to renegotiate the terms of the contract and establish a framework for on-going service delivery under the new contract
Outcomes to Customer
- A new price schedule was successfully negotiated with contractor with the minimum of disruption
- New service level agreements were struck between the government department and the contractor
- Principals of trust and confidentiality were achieved, together with significant unit cost reductions
Back To Top