Crown Commercial Service helped Network Homes save 38% on its mobile voice and data connections through an aggregated further competition.
Network Homes was looking to replace a number of mobile voice and data contracts, all with various start/end dates, with one consolidated contract. It felt a new contract would bring with it better terms and an opportunity to refresh the overall approach to the supplier account management.
The Crown Commercial Service aggregation team regularly run further competitions for multiple customers based on standard specifications for common goods and services. Combining the requirements of multiple organisations helps save time and money, as larger volumes attract more interest from suppliers. Any further competition will be managed by us and won’t cost you anything.
Network Homes expressed an interest and provided details of their requirement. We were able to provide an “indicative savings analysis” to assess the minimum savings they could achieve, by comparing an “indicative tariff” (set as a ceiling price for bids) against their current rates.
Network Homes realised by joining the aggregation it stood a better chance of making a greater saving than if it stood alone.
The indicative savings analysis document allowed the housing association to focus on the other important things needed to be considered; the number/type of connections required, how it was currently using its devices, and how this might change in the future.
This made the process simple and straightforward when it was time to sign the letter of intent.
The competition took place in Feb-March 2018 bringing together the common requirements of 13 customers, amounting to over 20,000 connections.
It resulted in an average 50% saving compared to the prices customers were paying. This is the equivalent of a saving of £1.9 million over 2 years for the customers who took part.
Network Homes achieved 38% savings.
Not only did Network Homes make a good saving, it was also a quick and easy process. Network Homes was kept informed at each stage and believe the saving achieved would not have been possible under the framework as a single customer.
Melanie James, Procurement Officer, Network Homes commented:
“I have always been quite apprehensive about joining an aggregated call-off, but the help and support I received from the team was outstanding. This has filled me with confidence for the future and I will definitely consider aggregation where and whenever possible. I would like to say thank you for such great service”
These results clearly demonstrate that with aggregated volumes and the adoption of a standard specification for a commodity product or service significant cost savings can quickly be realised.
Find out more
To find out more about future opportunities, please view our dedicated aggregation webpage
To learn more about how our free to use aggregation services can help you make savings or to discuss any of the current opportunities please fill in our online enquiry form and quote ‘Aggregation’.
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