Unlocking Strategic Savings
A leading global developer of hyperscale data centres appointed us in late 2024 to support the delivery of five major projects across the EMEA region. With limited internal procurement resources, this client required an experienced partner to manage the process and secure timely delivery.
Following a detailed review of project requirements, we identified that a new procurement strategy was essential to meet programme deadlines and secure the best commercial terms. Working closely with our client’s internal teams, we developed a tailored approach and supporting narrative to secure investment and executive team approval.
Through a comprehensive reshaping of the procurement process and leveraging our established supplier relationships, we achieved capital expenditure savings of 30-40% against budget and significantly reduced lead times. This brought all projects back on schedule and delivered significant commercial value. Our work demonstrated the ability to rapidly identify challenges, develop effective strategies, and implement solutions to drive successful project outcomes.
At a glance
-
ClientConfidential
-
ServicesSupply Chain and Procurement Management
-
sectorData Centres
-
LocationEMEA
Overhauling the procurement strategy
To bring the programme back on track, we addressed three key areas within the procurement process:
- We implemented a two-stage tender strategy, rewrote all procurement documentation, and introduced tracking tools to provide full transparency for stakeholders across each project
- We audited the delivery programme to identify issues, then realigned it to make sure all equipment was scheduled to arrive at the correct site, in line with construction milestones
- We expanded our client’s supplier base by introducing new suppliers and conducting robust due diligence to strengthen competitive tension and improve performance.
Implementation of these strategies delivered immediate results. For example, we identified that a major equipment package was scheduled for delivery several months ahead of when it was needed, posing a risk of additional maintenance costs and potential damage. We worked with the client to realign the delivery and eliminate unnecessary risk.
Through strategic re-tendering across all five sites, and leveraging our market relationships and commercial expertise, we secured significant savings, including a cost reduction of more than 30% on long lead time mechanical and electrical equipment.
Standardising to add value
Alongside our core services, we conducted a Total Cost of Ownership analysis. We aligned all documentation and processes to comply with professional industry standards. Working closely with the commercial, technical and design teams, we aligned the schedule and reviewed maintenance contracts to bring them into a standardised framework, comparing the overall package to include OpEx as well as CapEx. We also developed clear, concise documentation, designed to be easily presented to the board for approvals.
A trusted partnership
The client’s executive team quickly trusted us to deliver and implement our recommendations. We worked with them to onboard new processes, implement best practices, and provide ongoing support, including factory visits. Moving forward, we will continue to provide them with strategic advice on their supply chain and procurement, reviewing their EMEA footprint and aligning the procurement strategy with their long-term goals.
RLB demonstrated exceptional Procurement competency and delivered significant cost efficiencies, and risk mitigations to ensure that major critical equipment is sourced in full compliance with design specifications and secured for delivery in line with strategic programmes for 5 construction projects across EMEA.
It has been a great pleasure to work with them, and I sincerely endorse their expertise, strategic approach and partnership.
FURTHER INFORMATION: