Industry: Aerospace Company Focus: Benchmarking, Sourcing Strategy and REP Process Management
A major aerospace company outsourced its transaction management function to a service provider under a "true-up" compensation model where the dedicated staff was reimbursed through commission rebates. Capstan was retained to benchmark the staffing levels versus annual deal volume, the costs of the team, and the split of commissions in excess of the true-up. Based on our analysis, the client decided to rebid the contract, eager to reduce costs and receive additional technology and innovation under a new agreement. Capstan assisted the client's Sourcing group in an RFP process which resulted in the incumbent provider retaining the work under a new contract with better rebates and alignment of interests with the client.
Industry: Aerospace Company Focus: Organization Design, Benchmarking and Sourcing Strategy
Capstan worked with the corporate real estate group of an aerospace giant to evaluate the pros and cons of centralizing global real estate and project management for six operating divisions and 70 million square feet of space. We provided an industry perspective on best practices by summarizing organization models from ten other Fortune 100 global companies including strengths and weaknesses of each model. We helped build consensus for change by quantifying the potential benefits of cross utilization of space and volume discounts on service provider contracts. Next, we studied the market for transaction rebates by benchmarking the proposed contract against eight similar contracts, including the value of consulting services often delivered at little or no cost to major clients. We then assisted in negotiating a transaction management outsourcing contract to support the implementation of the first phase of the reorganization.
