After carving out a $100M 3PL(third-party logistics provider)/transportation logistics and inventory supply chain management business from a $3.6B moving and relocation services company, the client (a private equity firm) asked Trexin to support the newly independent business while managing all transition services. This was to be accomplished by becoming interim CIO and a member of the initial executive leadership team, and by leading the effort to reposition or develop the business’ IT infrastructure and capabilities.
Acting as Interim CIO over a 16-month period, Trexin provided numerous value-added services, including:
- Helping to negotiate stock purchase terms
- Helping to negotiate transition service agreements
- Establishing a new IT organization
- Establishing a new data center, network, outsourced hosted services, and operations
- Leading a major re-platforming initiative for key systems
- Establishing new IT managed service relationships with the old parent company
- Renegotiating all major IT contracts
Some of Trexin’s analysis demonstrated that:
- Mainframe applications were business critical but too burdensome, costly, and inflexible.
- The business needed a lower/variable cost IT operating model and cost structure.
- IT needed a more prominent role in new business development and cost structuring.
Trexin was directly responsible for driving out approximately $5M in IT cost. Over the course of the engagement, Trexin met all major deadlines, met all related budget goals and business driven spin-out milestones, helped hire a full-time CIO, aided in the setup of a new management team, and created a high-spot 18-month IT Strategy.