ISG helps a drugstore chain put governance in place to manage a new multi-sourced environment.
![Button-CS-Opportunity Opportunity](/images/default-source/default-album/button-cs-opportunity.png)
Opportunity
After a massive enterprise growth initiative to create significant cost reduction and staff efficiencies, this drugstore chain company had multiple suppliers but no experience managing such an environment.
![Button-CS-Imagining Imagining IT Differently](/images/default-source/default-album/button-cs-imagining.png?sfvrsn=4299e431_0)
Imagining IT Differently
ISG designed and operated a governance structure to minimize value leakage and ensure end-to-end contract compliance for all outsourced services.
Under a tiered solution aligned with the company’s business needs, preferred providers are governed via 10 processes, and lower tier providers are governed via six processes.
Under a tiered solution aligned with the company’s business needs, preferred providers are governed via 10 processes, and lower tier providers are governed via six processes.
![Button-CS-Future Button-CS-Future](/images/default-source/default-album/button-cs-future33d58f95f6446a14bdc7ff0000f6f5b0.png?sfvrsn=88f8e531_0)
Future Made Possible
- Identified value leakage of $22 million over four years.
- Identified nearly $61 million in cost savings opportunities from effective governance.
- Freed the company’s global sourcing office to focus on strategic partnerships and negotiations.
- Implemented sophisticated financial reporting that enabled “what-if” scenarios for strategic negotiations between the client and service providers.
- Improved access to skilled resources on-demand, supporting increased volumes on an as-needed basis at no additional cost to the company.
- Increased governance maturity for improved controls and reduced audit and supplier risk.