Manufacturing
Client Overview
- Fortune 100 auto manufacturer under severe stress due to 2009 financial crisis
- Immediate requirement to cut costs without creating performance risk
- Required cost savings strategy be implemented within 60 days
Business Challenges
- Financial markets were not functioning; Credit markets were in chaos
- Client equipment on expiring leases had no continued maintenance
- Client IT refresh strategy was still important, yet secondary to cost cutting initiative
Solutions Implemented
- Strategic options were identified through teamwork & onsite meetings
- An extensive evaluation of credit markets to support a rewrite & extension strategy was completed
- IFS priced rewrite scenarios extending equipment to a reasonable useful life
- An implementation of cost effective maintenance options as existing leases expired was identified
The Result
- A rewrite & extension of all existing PC & Laptop leases for an additional 12 months was implemented
- IFS presented continuing maintenance alternatives. No maintenance was purchased
- The solution delivered reduced rentals an average of 30% vs. total current rentals
- IFS solution maintained the IT refresh strategy; Refresh was extended out 12 months
