Farmers Mutual Hail Calls on Seprio Again... Reaps the Benefits of Consistency in their Vendor Management and Negotiations
Des Moines, Iowa – September 1, 2017 – Seprio, the leader in helping businesses protect their priorities by contracting better, and Farmers Mutual Hail Insurance Company of Iowa (FMH), an insurance company providing peace of mind to American farmers and their families, today announced the results of their most recent IT contract negotiation, achieving cost savings of $9.7 million.
“We had our data storage evaluation down to a pair of finalists: our current vendor and another well-established provider,” said Larry Casey, Senior Vice President & CIO for FMH. “We engage Seprio on all major expenditures. Their independent but empowered position, coupled with their deep industry knowledge makes them a valuable asset in any negotiation.”
The scope of work included contract analysis, negotiation strategy, and negotiations. “Seprio led negotiations for the previous contract a few years ago,” said Randy Roth, President of Seprio. “Because we were familiar with their business priorities and delivered millions in savings previously, we had earned their trust to do it again.”
Seprio noted the unique importance of establishing a level playing field when engaging in negotiations involving an incumbent vendor. Seprio reviewed and analyzed the vendor proposals and developed a comprehensive, “apples-to-apples” comparison. After evaluating proposals and a comparison summary in collaboration with all FMH stakeholders, final negotiations ensued.
Seprio used a ready-made baseline established by the previously completed deal and current proprietary insights on market data. Both were instrumental in negotiating advantageous pricing and contract provisions. The baseline allowed Seprio to focus on what they called the “last mile” of the negotiations. Upon completion, the final deal not only represented an improvement from the originally completed deal, but Seprio was able to lower the incumbent’s initial proposal by an additional $300,000, bringing total cost savings on the purchase to almost $10,000,000.
Both vendors acknowledged Seprio’s “tough but fair” approach to negotiations. FMH noted that this approach creates additional value because it also fosters positive relationships ensuring that vendors will fight for FMH’s business again in the future.
“This project is clear evidence that when sourcing and negotiation best practices are utilized, they not only result in a better initial deal, but also have a ripple effect that leads to better deals in the future, whether with the incumbent or a replacement vendor,” said Roth.
About Farmers Mutual Hail
Headquartered in West Des Moines, Iowa, FMH has served America’s farmers since 1893 with a combination of financial strength, personal service, and Midwestern values. A leader in the crop insurance industry, the company has been managed by the same family for 125 years, and has a reputation of building lasting relationships that benefit their employees, business partners, and customers. FMH provides comprehensive risk management solutions, including private and federal crop insurance, reinsurance products and services, as well as farm and ranch insurance that includes auto, property, and liability coverage. Learn more at www.fmh.com.
Protecting business priorities when partnering with vendors grows more complicated every day. Because of constraints in resources and expertise, many teams find themselves at a disadvantage managing vendor evaluations, negotiating terms, and securing fair financial value. Overcome those constraints, reduce risk and preserve fiscal health. Protect your business priorities. Contract better. Learn more at Seprio.com.