At a glance
- 41% cost saving
- Added service benefits
- Safer risk position
- £240k cash benefit on signature
Mobile Phones RenewalClient:
DTZ is a global real estate adviser, working with clients to create leading-edge property, investment and business solutions worldwide.Scope:
Turnstone was invited by DTZ to commence a project for the tendering and negotiation for the renewal of their large mobile telephone contract.
Having a request for information (RFI) already in progress, DTZ asked Turnstone to manage the request for proposal (RFP), with the remit of successfully acquiring the best value contract in terms of cost, lowest risk and added value.
In addition, the following improvements were required:
- To achieve better global coverage and pricing under one contract
- To streamline billing, which was time-consuming and inefficient
- To harmonise individual phone contracts which did not terminate together, effectively locking the client in
- a 41% saving, worth £284k pa
- Provision for scaling across Europe with tiered discounts
- Reduced administration costs through enhanced billing
- Better contract for DTZ, with less contractual liability
- Future proofed with rates for newer technologies included
- ’Co-terminus’ for all handsets at end of contract, to allow free tendering at next renewal
Turnstone set out a special strategy for DTZ. A detailed specification and Q&A process were drafted to ensure that bidders’ responses were comparable and provided similar levels of information.
Bidders for the contract were then quality scored against a matrix agreed with DTZ, which included all aspects of providing successful service.
During cost negotiations, an e-auction was used to foster maximum competition amongst the bidders, resulting in the lowest market pricing.
Based on a combination of pricing and quality scores, the client selected the winning vendor.
Note that the latter provided a significant cash sum upon contract signature.
The e-auction proved to be so successful that DTZ have saved a substantial amount of money and gained a wealth of added service improvements.
"We deployed Turnstone to effectively 'outsource' our tendering process for a major telecommunications contract. Turnstone clearly added value to the end contract and also facilitated cost savings significantly in excess of their fees."
Duncan Scott, CIO