Commercial assessment
Assessed existing commercial arrangements to establish the sourcing and negotiation priorities.
All case studies
Strategic Procurement & Commercial Negotiation
A large Australian organisation undertaking significant technology-enabled business change required senior commercial and sourcing expertise. The engagement strengthened supplier accountability and service commitments while renegotiating a major agreement to reduce costs by approximately $120 million over five years.
- Client
- Large Australian Organisation
- Industry
- Technology-Enabled Business Transformation
- Engagement
- Sourcing strategy, technology procurement & commercial negotiation
Executive summary
A large Australian organisation undertaking significant technology-enabled business change required senior commercial and sourcing expertise to assess its supplier arrangements, improve contractual outcomes and strengthen service commitments while maintaining operational continuity.
Our consultant assessed the existing commercial arrangements, developed the sourcing and negotiation strategy, and led executive stakeholder engagement and major supplier negotiations. The work combined commercial modelling, contract review, governance and risk assessment to support informed decisions.
The engagement renegotiated a major supplier agreement, reducing costs by approximately $120 million over five years while increasing committed service levels. It strengthened commercial value, supplier accountability and executive confidence in the procurement decision.
The situation
- A major supplier arrangement needed to be assessed and renegotiated
- Commercial outcomes and committed service levels required improvement
- Operational continuity had to be maintained throughout the process
- Executive stakeholders required clear commercial analysis and decision support
- Contract, governance and supplier risks needed to be understood and managed
The organisation needed to improve commercial and service outcomes without disrupting critical operations.
The approach
Sourcing & negotiation strategy
Developed a practical strategy spanning software, infrastructure and outsourcing arrangements.
Executive & supplier engagement
Led executive stakeholder engagement and major supplier negotiations with clear commercial objectives.
Evidence-based decision support
Combined commercial modelling, contract review, governance and risk assessment to support informed decisions.
The offering
Procurement & sourcing strategy
- Assessment of existing commercial arrangements
- Sourcing and negotiation strategy
- Technology procurement expertise across software, infrastructure and outsourcing
Commercial negotiation
- Executive stakeholder engagement
- Major supplier negotiation leadership
- Contract and commercial review
Governance & decision support
- Commercial modelling
- Governance and risk assessment
- Evidence-based executive decision support
Broader procurement capability
- ERP and Finance selections
- HRIS and Rostering selections
- CRM selections and implementation programs
Value delivered
~$120M
Cost reduction over five years
Increased
Committed service levels
Strengthened
Commercial value
Improved
Supplier accountability
Increased
Executive confidence
Maintained
Operational continuity
Business impact
Executive leadership
- Greater confidence in the procurement decision
- Clear commercial analysis and risk visibility
- Informed decision-making throughout negotiations
Commercial & procurement teams
- A clear sourcing and negotiation strategy
- Stronger contractual outcomes
- Improved supplier accountability
The organisation
- Approximately $120 million in cost reduction over five years
- Improved committed service levels
- Operational continuity maintained during negotiation
Why MethodWerx
Our consultant brought senior commercial and technology procurement expertise to complex sourcing decisions:
- Procurement strategy
- Sourcing strategy
- Contract negotiation
- Commercial advisory
- Vendor assessment
- Technology procurement
The engagement delivered measurable commercial value while strengthening service commitments, supplier accountability and executive confidence.
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