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Case study · Procurement modernization

Rebuilding professional services buying
at a Fortune 100 insurance carrier.

A $2B portfolio spread across more than 1,900 suppliers, consolidated by nearly a third in about twelve months, with AI governance built into sourcing rather than set beside it.

$2B
Annual professional services spend
1,900+
Suppliers in the portfolio
~32%
Portfolio consolidation
12 mo
From mandate to operating model
The situation

Spend that was legitimate, and bought more than once.

A global insurance carrier was spending roughly $2B a year on professional services, and the supplier base had grown past 1,900 firms: consultancies, law firms, staffing suppliers, technology integrators and specialist advisors. Most of that spend was legitimate and most of it was buying something real. It just was not buying it once.

Requests came into sourcing without a common front door, so cycle time depended on who picked up the request. Contract terms lived in documents that could not be queried at a portfolio level. And AI had already arrived inside the supplier base, mostly through product updates and delivery methods rather than through anything the carrier had approved. In our experience this is common. The AI questions tend to arrive before the data is ready to answer them.

The work

Three workstreams, running in parallel.

Led by Hive's managing partner in her role as the Global Vice President responsible for the strategy behind the carrier's sourcing organization.

01 · Category framework
A model the organization could operate
The ProServ RSO model: Rationalize the supplier base by category rather than by line item, Standardize how work is scoped and how it comes in, and Optimize the remaining portfolio once there is something coherent to optimize. RSO now sits inside the carrier's operating model.
02 · Platform decisions
Two solutions, chosen deliberately
A months-long evaluation produced two solutions rather than a suite: a front-end intake solution that sped up the sourcing request process, and a contract management and RFx platform that made the contract estate something the organization could read, compare and report on.
03 · AI governance
Vendor oversight built into sourcing
Where AI was in use across the supplier base was mapped and reconciled against what contracts and supplier agreements already committed both sides to. Leadership received a framework it could apply at renewal, built on an enterprise data platform with oversight owned inside sourcing.
The outcome

What came back.

~32% consolidation
Supplier portfolio consolidation across professional services categories.
Hundreds of millions
In savings identified, to be realized over the months that followed.
A faster front end
The intake work shortened the front end of the sourcing cycle, which is where much of the delay in professional services buying sits.
Board-ready answers on AI
When questions about supplier AI use came from the board, regulators and the carrier's own risk function, there was a documented answer rather than an exercise.
The read-across

Why this matters below the Fortune 100.

The mid-market version is the same problem with fewer people pointed at it. A company up to $2B in revenue often carries a purchased services portfolio that no one owns end to end. It sits across legal, IT, HR and the business units, and rarely shows up as a single number in a board deck. The same AI disruption is moving through that supplier base, usually without a contract term that addresses it.

What we find is that companies at this size rarely need an enterprise transformation program to make progress. What tends to work is sizing where the savings are, choosing a small number of tools that fit, and placing ownership and governance inside procurement. That work runs in weeks rather than quarters.

Savings and tool selection
AI in Procurement
Where AI will bring the most savings and cost avoidance, which tools to implement, and how to put them to work. Starts with the four-week AI Savings Assessment, priced as a fixed fee or on outcomes.
Governance and oversight
AI Risk & Governance Review
Where AI is already in use across the organization and its suppliers, checked against what contracts already commit you to. Four weeks, fixed fee or outcome-based pricing.
Start with a conversation

30 minutes. No pitch.
Real answers.

A senior Hive advisor will walk you through how this work would apply to your procurement organization.

30 minutes · No pitch · Senior advisor · NDA before disclosure