IT Equipment Case Study
Public Sector Client
The Challenge
The Client needed to develop a solution to gain control and visibility of it’s IT equipment spend, whilst at the same time reducing costs, improving service and implementing a refresh programme.
In reality there was no procurement strategy for IT equipment other than to use OGC Catalist suppliers (Office of Government Commerce approved suppliers). Budget holders were free to buy any equipment they deemed necessary. This created significant problems for IT in supporting and maintaining a very diverse range of equipment.
Whilst the Client appeared to be obtaining equipment at competitive prices the total cost of ownership was significant and they were not achieving value for money.
Stenmoore Role
We worked very closely with the IT department. Initial activity focused on three key aspects:
- Building an accurate register of all equipment including, desktops; laptops; and notebooks. (IT consumables were excluded as we were running a separate activity for that category).
- Developing a comprehensive database of all related costs including the purchase cost of the equipment and the IT support costs.
- Defining a refresh programme and the service environment required to support the Client requirements of reliability, flexibility and responsiveness.
When we had built a comprehensive understanding of the existing installed equipment base and the service requirements we worked with the IT Department to define standard specifications for the different types of equipment required. We developed a total of six – two for each of the equipment types, a “normal” office requirement, and a high performance specification for more specialised areas of operation.
Stenmoore then issued an RFI (Request For Information) to establish which supply partners had the product range to meet the clearly defined requirements of the Client. A short list of five potential supply partners was identified and invited to submit proposals.
The responses were evaluated using the following criteria:
- cost,
- compliance to specifications,
- implementation and refresh plan,
- security (disposal of legacy equipment, destroying hard drives),
- service & help desk,
- account management including MI reporting, and continuous improvement.
The contract was awarded to a single OGC Catalist supply partner who satisfied all criteria.
Stenmoore managed the entire process with the Client supplying subject matter experts from their IT Department.
The Delivery
The new service delivery structure delivered annual “hard cash” savings in excess of £400,000 with a significant improvement in total performance. Benefits realised for the Client included:
- Hard cash savings of £400,000
- Standardised equipment
- Efficiency benefits – especially in IT
- Visibility and transparency of costs– enables very accurate budget forecasting
- Transformation in the levels of service
- Single supplier committed to continuous improvement in both cost and performance
Stenmoore were responsible for working with the supply partner to implement the new solution and drive compliance across the Client organisation. We are still managing the relationship with the supplier and we are developing a continuous improvement programme.