Streamlining Procurement Onboarding for Newco Spin-off

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CHALLENGE

Newco, a dynamic organization on the verge of independence from its parent company, faced a critical challenge. As the close date approached, Newco was confronted with the daunting prospect of losing access to a full procurement department. This impending transition created a substantial gap in their ability to effectively onboard new suppliers and manage critical procurement activities, including supplier onboarding administration and contract negotiation.

The challenge at hand was twofold. First, Newco needed a comprehensive procurement onboarding solution that could facilitate a smooth transition into independent operations starting from day one, the close date. Second, it was imperative to work toward separating from any Transition Services Agreements (TSAs) as swiftly as possible to regain full autonomy.

SOLUTION

To address this critical challenge, Newco turned to the Intuitive Edge team, a trusted partner with a proven track record in transitioning procurement solutions. Here’s how we crafted a solution tailored to Newco’s needs:

  1. Streamlined Supplier Onboarding: We implemented our highly efficient Contract Optimization Platform and In2Insights dashboards. From document collection and compliance checks to setting up essential communication channels, we ensured a seamless experience for Newco and its suppliers.
  2. Swift Contract Negotiation: Our team of skilled attorneys worked closely with Newco to expedite contract negotiations. Our historical data analytics capability secured better deals for Newco.
  3. TSA Separation Strategy: We developed a clear and actionable plan to accelerate the separation from the TSAs. By aligning strategy and execution, we minimized disruptions and reduced associated costs.

RESULTS

  • The results of our partnership with Newco were remarkable:
  • Newco successfully transitioned into independent operations on the close date with minimal hiccups.
  • Supplier relationships remained intact and were even strengthened due to efficient onboarding.
  • Contract negotiation time was significantly reduced, leading to cost savings and quicker revenue realization.
  • Newco swiftly separated from TSAs, gaining full control of its operations and reducing ongoing costs.

This case study shows how Intuitive Edge provided a tailored solution that not only addressed Newco’s immediate challenges but also set them up for long-term success in their journey to independence. Through our partnership, Newco confidently navigated an intricate transition, ensuring uninterrupted procurement and laying the foundation for sustained value.f

 

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Streamlining Procurement Contract Templates

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CHALLENGE

A prominent company in the cable industry faced a significant challenge in its procurement process. The company utilized over 30 lengthy and convoluted contract templates for their procurement activities. This cumbersome approach led to administrative difficulties, prolonged negotiations, and an overall inefficient contracting process. The company recognized the need for a more streamlined and efficient solution to manage its contracting with suppliers.

SOLUTION

To address the challenges faced by the company, the Intuitive Edge team was engaged to devise a solution that would simplify and optimize the procurement contract templates. The team embarked on a comprehensive analysis of the existing templates, focusing on identifying commonalities and redundancies. Through careful evaluation, the team managed to consolidate the 30 templates into a more manageable set of 6 templates. With a focused approach, it took the team 3 weeks to complete the task. Each of these new templates was designed to be concise, user-friendly, and aligned with industry best practices.

RESULT

The implementation of the streamlined contract templates yielded remarkable results for the company’s procurement process. The condensation of templates not only reduced administrative complexities but also expedited the negotiation phase significantly. As a result, the contracting process became less cumbersome and more efficient, allowing the company to onboard suppliers more swiftly.

The company’s legal department was particularly impressed with the Intuitive Edge team’s ability to transform legacy templates into a concise set that aligned with modern contracting practices, something they never had time to do. The new templates not only made the legal team’s work more manageable but also demonstrated the potential for innovation within the organization.

Overall, the successful implementation of the streamlined contract templates led to a smoother procurement onboarding process, fostering improved relationships with suppliers, and enhancing overall operational efficiency within the company. The case highlighted the importance of adapting to current needs and leveraging expertise to optimize business processes effectively.

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Optimizing a Contracts Portfolio

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CHALLENGE

A multi-national equipment manufacturer and services Company had accumulated numerous suppliers and did not have sufficient contract language to cover rigorous customer requirements, government regulations and its code of conduct leaving them wide open to risk and disputes.

SOLUTION

Our personnel used a methodical and organized strategy as follows: thoroughly reviewed largest and most stringent customer agreements, identified gaps, developed improved supplier templates, established an enhanced vendor management questionnaire, obtained buy-in for new process and implemented change by including key personnel in the development of the new streamlined ways of working. Existing suppliers were brought into compliance through a streamlined contract process.

RESULT

This project resulted in minimized risk exposure, ability to quickly locate documents and significant margin improvement by avoiding costs associated with slow-turn-around times, fines, disputes and insurance premiums.

2000 Services Contracts Acquired in 8 Months

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CHALLENGE

Company A was negotiating a $2B managed services deal with its customer, Company B, and as a result needed to prepare to acquire a large number of supplier contracts from Company B. Company A had to “take over” the supplier contracts, but had no idea what terms were originally agreed to and what risks and obligations Company A would be taking on. Company A needed to understand the volume of contracts, the risks and exposures they entailed, and how substantially the contracts deviated from its own requirements and standards. This was a huge and daunting task that would require a lot of time. Furthermore, the legal and procurement department personnel were already overloaded with other work.

SOLUTION

After some collaborative discussion with Company A, we formulated a team to step in and handle the transition of the procurement contracts and related documents. A plan was developed and tracked in order to make sure everything was covered in a timely manner. First, after a preliminary understanding of the strategies, policies and procedures of both Company A and Company B, the documents were organized and stored on a secured and encrypted data room. Incorporated into the plan were a review process, gap analysis, business analysis, risk assessment, priorities and disposition options. Templates and approval processes were created with an eye for simplicity and efficiency.

RESULT

​Over 2,000 supplier agreements were effectively transitioned to Company A in 9 months. Risks were minimized significantly due to the organized, focused review and analysis and the resulting ability to prioritize and close as many gaps as possible during the transition. Our team was also involved, from a procurement perspective, in the negotiation and closing of the managed services contract between Company A and Company B.. Company A personnel were able to participate in the transition but did not need to take time away from their full-time jobs to do so. Our involvement also gave Company A an “end in sight” and completion window, which allowed the business operations to move forward quickly, without the constant need to revisit transition activities.

Focused Management of Procurement Contract Separation

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CHALLENGE

Company A, a multi-billion dollar technology company, intended to sell one of its technologies called RADIANT. Company A had hundreds of vendors that were an integral part of completing a purchase of RADIANT. Once a buyer came to the table, Company A had obligations to separate, assign or complete certain contractual steps forward in order to transition all relevant vendors to the buyer. This was a huge and daunting task for Company A that would require a lot of time and resources, something which Company A did not have the bandwidth for. In the past, when Company A utilized a consulting firm to actualize a similar transition, some relationships with the vendors were jeopardized due to lack of sufficient communication and relationship management.

SOLUTION

After an assessment and collaborative discussion with Company A, our personnel formulated a Dream Team, co-led by a Project Manager and Attorney to step in and handle the transition of the procurement contracts, in order for Company A to meet its obligations.  The first step was to start collecting documents and organizing them in a virtual data room so that analysis of the contracts could begin.   A comprehensive Playbook was then developed in collaboration with Company A, including how and when to use a “Soft Touch” approach.  The full team was formed and the Playbook was executed.

  • OASIS Cycle® ensured all bases were covered proactively for maximum efficiency.
  • Enhanced relationships with vendors were achieved through Soft Touch quality communication,
  • The Dream Team adapted and provided solutions quickly when customizations were needed.
  • The Dream Team proactively identified issues before they became unmanageable.
  • Full transparency into project KPIs, milestones, gaps and issues was maintained and communicated to both buyer and seller  throughout the process.

RESULT

  • Company A obligations were not only met, but exceeded, in terms of time and level of effort.
  • All gaps and issues were identified and communicated in time for alternative decisions to be made.
  • Total support was provided, allowing Company A to relax, monitor progress and see an end in site.
  • The $2B sale of RADIANT closed successfully.
  • Buyer also hired our team to perform post-close contracts services.