Further 43% cost reduction from SAP’s initial discounted offer.
Overall discount level raised by 20% on an already reasonably attractive discount offered by SAP.
Price hold clauses and organisational-specific clauses negotiated.
Client Profile
Global manufacturing company that has grown through acquisition. Multiple SAP instances (some on support and some not), governed by multiple SAP license agreements, and non-SAP ERPs across North America, Europe, and Asia.
Objective
The customer faced a tight deadline to consolidate all SAP and non-SAP ERPs on to a Central Finance platform. SAP presented a bill of materials but there was scepticism internally whether it addressed their requirements both in the short-term and long-term.
What was delivered?
- The types and quantities of required products were not ramped up in accordance with the go-live dates
- Excessive support-related SKUs were included but AMS was excluded
- Customer was not aware they could negotiate reducing on-premise support fees
- SAP had not made the customer aware of the scope and thresholds documented in the R&R which would have resulted in significant unforeseen costs at a later date
- Inclusion of SKUs in Year 1 typically not required at the outset & Sub-optimal price tiers for several products
- Skewed discount level – at face value looked attractive but considerably less so at line-item level
- Review and mark-up of all licensing-related paperwork
- Behind-the-scenes coaching to enable commercial teams to replace SAP in the driver seat during the negotiations
- Pricing analysis and recommendations
- Review of all licensing-related sizing information to ensure optimal types and quantities procured
- Advice on what to include and exclude (i) indefinitely and (ii) initially
Results and Impact
- Further 43% cost reduction from SAP’s initial discounted offer
- Overall discount level raised by 20% on an already reasonably attractive discount offered by SAP
- Price hold clauses and organisational-specific clauses negotiated
