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Case StudyLogistics·IT Vendor

How a logistics company got its IT provider hitting 94% of targets, for 22% less.

The managed IT provider missed most of its service targets, but the invoice arrived in full every month. Skillfi's fractional CIO set clear service levels, made performance visible and renegotiated the contract, so the company finally got what it paid for. It's how our fractional CIO service works: technology that makes the whole business run better.

Service targets met
58%→94%
−22%Contract cost
$190KSaved a year
4 hrsFix time, from 2 days
01

Paying full price for half the service.

The company runs eight depots and a fleet of 300 trucks, and relies on IT for dispatch, tracking and billing. All of its IT support was outsourced to a managed services provider on an $860,000-a-year contract.

The contract had vague promises and no penalties. Urgent issues at depots took two days to fix, dispatchers lost hours to slow laptops, and the same problems kept coming back. The provider's monthly report said everything was fine. Nobody inside the company owned the relationship, and the contract was about to auto-renew for three more years.

58%of service targets met
2 daysto fix urgent issues
$860Ka year, paid in full

Their reports were always green. Our depots were telling a very different story.

COO, client
02

Measure it, then pay for results.

Our fractional CIO took ownership of the provider relationship, gathered the facts and used them to reset the contract before it renewed. The new contract terms were reviewed by our legal & compliance team.

Measure

The real picture

Six months of tickets, outages and staff feedback analysed independently, showing exactly where the provider fell short.

Define

Clear service levels

Response and fix times by priority, depot uptime targets and first-time fix rates, with service credits when targets are missed.

Manage

Ongoing oversight

A live dashboard, monthly performance meetings and quarterly business reviews, run by the company, not the provider.

The Engagement

5 months, step by step

From an unchecked contract to a provider held to clear targets. Here's how the engagement unfolded.

  1. Month 1

    Independent review

    Ticket data, outages, contract terms and depot staff feedback reviewed to measure real performance.

    6,200 tickets reviewed
  2. Month 1–2

    Renewal paused

    Auto-renewal stopped in time and the provider given a formal improvement plan with clear deadlines.

    Renewal stopped
  3. Month 2

    Service levels defined

    Targets set by priority and depot, with service credits and a clear way to escalate problems.

    12 service levels
  4. Month 3

    Market check

    Three other providers asked to quote, giving a clear benchmark for price and service.

    3 quotes
  5. Month 4

    Contract renegotiated

    A new two-year contract with lower fees, service credits and the right to exit if targets slip.

    −22% cost
  6. Month 5

    Ongoing oversight

    Live dashboard, monthly reviews and quarterly business reviews handed to the internal IT lead.

    94% of targets met
Inside the New Model

How the provider is run now

Four habits that keep an outsourced IT provider accountable, long after the contract is signed.

TargetsContract

Clear service levels

  • Fix times by priority
  • Depot uptime targets
  • Service credits
VisibilityLive

One shared dashboard

  • Tickets & fix times
  • Repeat problems
  • Staff satisfaction
ReviewsMonthly

Problems fixed at the root

  • Missed targets explained
  • Repeat issues tackled
  • Actions with owners
StrategyQuarterly

A provider that adds value

  • Business reviews
  • Improvement roadmap
  • Cost & value check
Every quarter: Business reviewService results, costs and upcoming needs reviewed with the provider's leadership every quarter, so the partnership keeps improving.
Month 1 · Renewal stopped Month 4 · New contract Month 5 · 94% of targets met
The Results

Five months later

Service targets met each month

Vague contract, no oversight58%
Clear targets & reviews94%
0%25%50%75%100%

Same provider, now held to clear targets.

Yearly contract cost$860K→$670K
Time to fix urgent issues2 days→4 hrs
Repeat issues—→−61%
Depot system uptime97.1%→99.7%
Staff IT satisfaction2.8→4.3
CO

We kept the same provider, but now we pay less and get far better service. Our depots stopped complaining about IT within three months.

COO, client
Your Turn

Paying your IT provider in full for patchy service?

Our fractional CIO will measure your provider's real performance, set clear service levels and renegotiate your contract, then keep them accountable. Need the contract terms checked? Add our legal & compliance team.

What we'd build for you
  • An independent performance review
  • Clear service levels & credits
  • A renegotiated contract
  • Dashboards & quarterly reviews
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