Client Success Story: CPG

Business challenge:

A global consumer enterprise headquartered in Switzerland sought to optimize its F&A and Supply Chain service agreements. The company was engaged in long-term Master Service Agreements (MSAs) and Statements of Work (SoWs) with major providers for F&A and logistics, P2P, and sourcing.

The primary challenge was negotiating better contractual terms, optimizing demand clauses to lower future expenses, and coach the client’s sourcing team toward optimizing future contract expense and service levels.

HFS solution:

HFS led a detailed cost assessment and contract restructuring process, including:

• Benchmarking offshore rates to compare Indian Tier 1, 2, and 3 locations, ensuring the client got the best pricing model.
• Analyzing providers’ fees and pricing structures, helping the client understand alternative pricing models for cost optimization.
• Guiding contract renegotiations, ensuring better financial risk mitigation, ESG compliance, and gain-sharing models.

Business impact:

• Successfully optimized $100M in spend with a single provider over five years.
• Identified cost reduction opportunities across offshore operations, ensuring a balanced mix of nearshore and offshore service models.
• Enhanced the sourcing team’s approach to negotiation to be applied in all future agreements.