A Procurement Transformation Turns Cost Control into a Competitive Advantage

FinancialServicesCo* is a leading global provider of financial administration services, managing complex ownership structures and investor communications on behalf of major listed companies. With operations spanning dozens of markets, the organization plays a crucial role in ensuring transparency and compliance in corporate ownership. To strengthen its bottom line, the company launched a cost transformation program to build transparency into third-party spending, identify areas of potential savings, and create a clear roadmap for implementation. An optimized procurement operating model underpinned these efforts.  

A procurement model built to last

The quest to reduce third-party spending began by putting stronger controls in place and adopting smarter buying practices. Key initiatives included:

• Establishing a contract review board with the authority to quickly manage business spending
• Creating a new high-capability chief procurement officer (CPO) role
• Leading several RFPs to set up a preferred vendor program and secure better terms across key areas like professional and IT services, contractor agencies, insurance, and employee benefits
• Realigning the contractor mix to ensure the right talent at the right price and shifting more work offshore to lower rates
• Renegotiating active IT services, backdating savings where possible and securing improved reseller rates
• Implementing cloud financial operations initiatives to reduce current cloud costs and keep future spending in check

To ensure long-term impact, we redesigned the procurement operating model itself. Together, we evaluated reporting lines, ownership of key activities, and category management structures. The result was a streamlined, category-based framework that grouped spending by value, vendor similarities, and executive stakeholders, creating both efficiency and accountability. Top-quality tools, process automation, and enhanced data analytics supported the work throughout the redesign.

Sustained value with savings that stick

Over a 13-month implementation, the company achieved more than $45 million in cost savings and is expected to deliver 3–4x ROI at full maturity. We left FinancialServicesCo with stronger capabilities and sponsorship to sustain best practices. Notably, the company’s stock price rose 50% during the same period—proof that disciplined procurement can deliver both operational and market value.