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CoreLogic - Procurement Outsourcing

Achieving cost savings and process efficiencies through Procurement Outsourcing


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Abstract

CoreLogic is a leading U.S.-based provider of consumer, financial and property information, analytics and services to business and government. CoreLogic provides services in real estate, mortgage application, fraud, loan valuation, flood determinations, and geospatial analytics and services.

In a dynamic business environment with challenged growth and continuing pressure on margins, CoreLogic sought to achieve near term and sustainable cost savings to free up resources which could be invested back in the business, evolve strategic sourcing competencies, improve its procurement organization, and drive sustainable process efficiencies and cost improvements. Deloitte was engaged to perform a high level spend analysis and identify improvement opportunities, assess the procurement function, arrange an outsourcing agreement with a strategic service provider, and establish a governance model.

The Challenge

Faced with a dynamic business environment, CoreLogic sought to improve its SG&A costs. The company required professional advice in identifying cost saving opportunities across its procurement function, an assessment of the service provider marketplace to understand capabilities in strategic sourcing and procurement outsourcing, and selecting a suitable partner for a transformation of the procurement function to the best in class.

The strategic objectives of the engagement included:

  • Understanding the maturity of the procurement function
  • Understanding an effective strategy to transform the procurement function to the best in class strategic sourcing and procurement -- internal improvement vs. outsourcing
  • Creating a plan to execute the strategy

Deloitte was involved in the following aspects of the project:

  • Conducting a strategic assessment of the procurement function
  • Developing a business case for procurement outsourcing
  • Developing and executing a Request for Information (RFI) and subsequently a Request for Proposal (RFP)
  • Conducting service provider evaluations
  • Assisting with negotiations and contracting

How We Helped

Deloitte's project team worked closely with the client's team to provide guidance and advice based on their specific areas of specialization, including:

  • Project leadership and subject matter specialization in global Procurement Outsourcing
  • Extensive experience working with leading outsourcing service providers
  • Pricing and functional benchmarks, knowledge of the service provider landscape and capabilities, and tools and processes to enable and accelerate the outsourcing initiative

Solution

Deloitte utilized its experience with the sourcing and procurement process, outsourcing lifecycle and knowledge of CoreLogic's organization to identify the specific strategy to meet its objectives.

The key phases of the project were as follows:

Phase 1: Strategic assessment and business case

  • Examined CoreLogic's procurement function and developed a current state assessment
  • Developed the as-is spend baseline
  • Conducted an RFI with multiple service providers in the procurement outsourcing marketplace to assess capabilities
  • Developed a business case to quantify the opportunity

Phase 2: RFP Development

  • Developed functional / operating model plans
  • Updated and refined business case
  • Developed and issued a detailed functional RFP to the shortlisted service providers
  • Developed a service provider evaluation framework

Phase 3: Service provider evaluation

  • Managed the RFP process
  • Evaluated service provider responses
  • Conducted service provider site visits and reverse analysis to evaluate capabilities
  • Down-selected two service providers for final negotiations

Phase 4: Contracting

  • Developed the Master Professional Services Agreement (MPSA)
  • Facilitated service provider visits to CoreLogic for analysis
  • Assisted CoreLogic in developing the negotiations strategy for the terms of the MPSA
  • Supported CoreLogic through the negotiations and created supplemental schedules (SOWs, SLAs, etc.) for the agreement
  • Created and managed the announcement communications and developed the governance plan to assist CoreLogic as it prepares for transition

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

 

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