Many organisations routinely purchase the same mobile goods and services, as and when they need them. This creates the perception of being tied to a particular supplier. Varying contract end dates, as a result of purchasing individual mobile phones at different times, also create a barrier to switching suppliers. This is because potential savings can be reduced or lost due to early termination charges.
The Crown Commercial Service (CCS) technology team wanted to help customers break this cycle by providing a way to bring together their requirements and achieve savings that would not be reduced by the early termination of existing contracts.
The concept of running regular further competitions for multiple customers based on standard specifications is a tried and tested approach for CCS. Combined volumes help attract more interest from suppliers and therefore achieve better value for customers.
We run these projects as a fully managed service. Customers just need to complete a form to express their interest, provide details of their requirements before we go to market and sign a contract with the successful supplier.
Innovative contract terms were also introduced on this project so that customers would be able to move their phone connections as and when existing contracts expire, throughout the first 2 years of the contract.
The project brought together the standardised mobile voice and data requirements of 13 customers - a total of over 11,000 phone connections.
It resulted in an average, indicative saving of 75% compared to the customers’ current spend. This is the equivalent of a saving of £2.7 million (based on connections being wholly migrated from the start of the agreement term) for the customers who took part.
These results clearly demonstrate that by combining volumes and using a standard specification significant cost savings can be quickly realised.
We would like to hear from customers across the public sector who are interested in securing savings by combining their requirements with other organisations on a range of technology goods and services including mobile services, IT hardware and other telephony services.