Our client the United Synagogue operates 50 sites, the majority of which are within inside the M25. They have been a client of The Procurement Group since 2006 and we value the long-term relationship that we have with them.
The Procurement Group have been saving UK businesses money for over 20 years using our procurement management techniques to drive down their business costs.
In this instance, the United Synagogue had no formal strategy for acquiring photocopiers and The Procurement Group identified this, which led to this project starting.
The main issue was that every site had its own contract, meaning that there were over 30 different suppliers. Each supplier had a different contract end date, different pence per copy charges, different termination requirements, and provided different manufacturers equipment. This made the estate very hard to manage for the United Synagogue’s in-house IT department.
The Procurement Group (TPG) try to simplify clients’ lives wherever possible. In this instance, we saw the opportunity to deliver a single contract, from a provider who would exit the United Synagogue from all of their existing contracts and still deliver a saving. The benefits to the United Synagogue would be that they would have brand new standardised equipment across their estate and also that they would have one transaction a quarter going through their bank and accounting system rather than over a hundred as was the current situation.
For this project to work, TPG had to have a thorough understanding of what was being paid at each of the 50 sites currently. This was actually the hardest part of the exercise because we had to contact each site and some of them don’t work five days a week so it was a difficult task to fulfill. To achieve this each site was visited and it was established what equipment they had, how old it was, how many copies they’d done, whether it was owned or leased and how copies were paid for – pence per copy or by buying consumables. That way we’d established a benchmark.
TPG then engaged operationally with the United Synagogue to understand their requirements going forward at each site, drawing up a list of the equipment specifications required, tendering the business, arranging beauty parades for the client to meet with suppliers to understand who was the best fit, and then to negotiate the contract with the suppliers.
Working closely with the United Synagogue’s head office team, we were able to achieve this and ended up delivering a 15% saving across the estate guaranteed for three years. It was important to both the United Synagogue and TPG that title to the goods passed to the client at the end of the initial three-year term because usage is very low at each individual site and therefore, the equipment would be in good condition rather than need replacing which is the norm in the copier industry.
TPG like to take a long-term view of situations and rather than delivering the maximum savings at day one, in this case, agreed a two-step approach with the United Synagogue. The first step was to get the estate consolidated with one supplier. As an outcome of this, we were also able to install software which recorded the exact usage at each site, thereby, overcoming one of the biggest hurdles we all had at the outset which was actually understanding what the usage was. The second stage will then be to retain the existing equipment and enter into simple maintenance agreements for all of the equipment going forward, meaning that the lease payments for ownership of the equipment disappear and deliver significant savings to our client.
This is an example of how TPG bring their considerable experience to bear for the benefit of clients and deliver long-term solutions, thinking outside the box and always taking the best route for their clients, whether or not that impacts on TPG’s revenue in the short term.
If you’d like to find out more about how we use cost reduction and spend optimization workflows and processes to analyse business data in order to ensure that we deliver best value for all of our clients in whatever sector they operate, then contact me, Simon Unger, on 07768 421901 or email@example.com