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Success Story - "Security Services"
 
Company Description
 
Publicly Traded Global provider of ingredients and solutions to the food, beverage and other industries
 
Company Situation
and Problem
The Client had moved to a large Global Security Services supplier and negotiated rates during the depths of the recent recession. The majority of the Security Guards had been retained by the new Security firm.

– Based upon discussions with the supplier, the Client anticipated rate
    increases for the future renewal period.

– The Client felt the Supplier’s pricing was reasonably competitive and
    did not identify any services issues.

– The client preferred the retention of the majority of the personnel and
    had concerns regarding transition cost and risks if a new supplier
    were to be recommended.
 
Paladin Actions & Recommendations Paladin worked closely with the Client, compiled historical costs and analyzed the current services.

– Paladin identified some service levels which needed improvement
   and overtime practices that needed strengthening.

– Paladin then prepared a complete Security Services Request for
   Proposal and engaged the top service suppliers in the potential bid
   process.

  
Client Results

With strong Paladin competitive negotiations, the incumbent was awarded a 3 year extension.
 

= Not only did the Client not incur an increase in the new period, the supplier reduced their markup 3 percentage points.
= In addition, since the incumbent won the extension, potential switching cost/risks were eliminated and the Client was able to work with the existing supplier on services improvement and strengthening overtime practices.
.
 
A competitive bidding process resulted in lower costs
 and improved services delivered by the
incumbent supplier.

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