Case Study: How KontractOne Delivered $1.5M in Savings and Enhanced Workday Capabilities for a Midwest Manufacturing Leader

Company Overview

KontractOne, a leading consulting firm specializing in enterprise software optimization and vendor negotiations, partnered with a prominent manufacturing company in the Midwest United States. This organization, employing 12,000 workers across multiple facilities, is a key player in its industry, producing a wide range of industrial and consumer goods. Facing a critical Workday renewal deadline, the company sought KontractOne’s expertise to secure a cost-effective best-and-final offer (BAFO) while expanding its Workday footprint to include new functionalities.

The Challenge

The manufacturing company had been a Workday customer for several years, leveraging its human capital management (HCM) and financial management modules to streamline operations. With its Workday subscription nearing its renewal date in early 2025, the company faced escalating costs proposed by Workday for the renewal. The initial offer from Workday reflected a significant price increase, threatening to strain the company’s IT budget. Additionally, the company aimed to expand its Workday deployment by adding new stock-keeping units (SKUs)—Financial Planning, Accounting Center, Payroll for US, and Core Financials—to enhance financial visibility and operational efficiency.

The stakes were high: the company needed to negotiate a favorable deal without compromising on the additional capabilities required to support its growing workforce and complex financial operations. Leadership turned to KontractOne to navigate the negotiation process and maximize value.

The Solution

KontractOne deployed a multi-faceted strategy to address the company’s needs:

Comprehensive Assessment: KontractOne conducted a thorough analysis of the company’s existing Workday usage, identifying underutilized features and aligning them with the company’s strategic goals. This assessment provided a clear baseline for negotiations and highlighted opportunities to optimize current licenses.
Vendor Negotiation Expertise: Leveraging its deep knowledge of Workday’s pricing models and industry benchmarks, KontractOne engaged Workday in a structured negotiation process. The team emphasized the manufacturing company’s long-term commitment to the platform while advocating for competitive pricing on both the renewal and the new SKUs.
Expansion Planning: KontractOne collaborated with the company’s IT and finance teams to define the scope and implementation roadmap for the new SKUs—Financial Planning, Accounting Center, Payroll for US, and Core Financials. This ensured that the added functionalities would integrate seamlessly with existing systems and deliver immediate value.
Best-and-Final Offer Optimization: Through iterative discussions with Workday, KontractOne secured a revised BAFO that not only reduced the renewal cost but also included favorable terms for the new SKUs. The final agreement reflected a balance of cost savings and enhanced capabilities tailored to the company’s needs.

The Results

KontractOne’s intervention yielded impressive outcomes for the manufacturing company:

Cost Savings: The company saved $1.5 million on its Workday renewal and BAFO, a reduction achieved through strategic negotiations and optimized licensing terms.
Expanded Capabilities: The addition of Financial Planning, Accounting Center, Payroll for US, and Core Financials empowered the company to centralize financial operations, improve forecasting accuracy, and streamline payroll processes for its 12,000 employees.
Future-Proofed Investment: The negotiated agreement positioned the company for scalability, ensuring that Workday could support its growth without disproportionate cost increases in future renewals.

CIO Testimonial

“Partnering with KontractOne was a game-changer for us. We were facing a daunting Workday renewal process with a significant price hike on the table, and we needed to expand our financial modules to stay competitive. KontractOne’s team brought unparalleled expertise and a results-driven approach to the table. They saved us $1.5 million while securing Financial Planning, Accounting Center, Payroll for US, and Core Financials—capabilities that are already transforming how we operate. Their strategic guidance and negotiation prowess made all the difference.”

Conclusion

KontractOne’s partnership with this Midwest manufacturing company exemplifies how expert guidance can turn a challenging vendor renewal into an opportunity for savings and growth. By combining deep industry knowledge, meticulous planning, and skilled negotiation, KontractOne delivered a solution that not only reduced costs but also enhanced the company’s financial and operational infrastructure. This case underscores KontractOne’s commitment to driving value for its clients, ensuring they achieve their business objectives with confidence and efficiency.