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A Global Manufacturer Finds Immense Savings In Vendor Contracts

Over the past 10 years, EVBox experienced rapid growth from start-up to scale-up and now intends to be listed on the NYSE as a publicly traded company.

During this transformation, EVBox implemented SAP under a tight schedule, which led to a strain on resources within the IT department. The vendor landscape has grown over the past few years, resulting in a broad IT vendor landscape with several vendors contracted by both business and IT.

EVBox’s focus was on growth, supported by ‘credit card IT.’ It was possible to purchase software without a process that determined if that software was necessary. This meant that there was limited transparency in IT spending and no full visibility into the contract and vendor landscape. Along with the implementation of SAP, EVBox launched an initiative to improve the data quality and completeness of the financial data regarding external IT costs (expenses).

To support the current initiative, EVBox asked IDC Metri for support with an IT spend analysis and to begin identifying opportunities for savings, improvements and optimization of the contracted IT landscape.

Objectives

  • Identify and prioritize savings initiatives, improvement actions and optimization opportunities in the current IT landscape.
  • Create a comprehensive overview of the contract and vendor landscape linked to external IT spend.
  • Gain control of external spend, contracts and the supplier landscape.

Results

In the spend analysis, we identified several areas for improvement. Recommendations ranged from negotiating opportunities with external vendors, optimizing allocation of licenses/services to users, implementing enterprise architecture to support the “make, reuse or buy” decision, and rationalizing overlapping functionality/services. Estimated savings opportunities on the largest contracts range from 5% to 35%.

In conjunction with the EVBox spend analysis, key suppliers were identified and analyzed at a more detailed level. In the analysis, we also found several contract and service management process-related challenges and made recommendations for improvement.

In addition to advice on improvement, IDC Metri provided an overview of the EVBox contract and supplier landscape, consisting of dashboards for the most important contracts regarding critical services, applications and cloud infrastructure. This is currently in use to improve contract and budget management.

Founded in 2010, EVBox is a leading global provider of flexible and scalable charging solutions for electric vehicles, with its headquarters in Amsterdam and 13 offices around the world. EVBox manufactures and distributes electric vehicle charging stations and charging management software. As of July 2021, EVBox has now installed more than 250,000 charging ports worldwide.

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