Challenge
A global ERM company faced with fierce external pressures from commodity prices, needed to find incremental savings in their air charter contracts. With an annual air charter spend of $18 million USD, the company had a longstanding relationship with their incumbent supplier and had not been to RFP in almost 10 years.
Prior to approaching CWT Solutions Group to manage the request for proposal (RFP), the incumbent supplier proposed a bid avoidance to our client proposing price increases across all markets. With historical challenges of limited supply in the region, the client was concerned that there would be minimal opportunity for savings.
A long-time client of CWT, the company’s procurement team reached out to CWT Solutions Group to help determine the opportunity of going to RFP and how Solutions Group could support in their efforts.
Our consultants took a detailed and custom approach, assessing the past twenty years of macroeconomic indicators, to create custom forecasting projections and a competitive analysis to determine potential opportunity. With the CWT Solutions Group insights and experience in hand, the ERM company made a well-supported decision to approach the market for a competitive pricing exercise.