Alabaré budgets boosted by impressive Auditel savings

Alabaré were approached by Auditel Client Manager, Gillian Gibbon to explore ways of helping them streamline procurement for their homes for veterans, projects for young people and their charity shops. The Auditel team have reviewed 4 cost groups to date consisting of Print Management, Energy, Mobile Phones and Fixed Line communications.

Print Management Project

Alabare had 38 devices across individual homes, office locations and shops with two incumbent suppliers and three contracts in place. They were spending £62,000 per annum on copier contracts and had a historic mix of equipment, some of which was not suitable for their needs.

Auditel was engaged to undertake an audit of the current equipment and contracts, produce a Solution Design and then tender to the market. The intention was to simplify the contracts by working with a single supplier for all locations, aim for a reduction of copying and printing as well as the use of colour, and implement remote fleet management to enable automation of meter readings and consumable fulfilment. Alabare also needed the copier fleet to be fully GDPR compliant.

Auditel ensured that the existing lease for the in-situ equipment had the correct notice served so as not to incur roll- on charges of £9,000.00 ex vat per quarter. Auditel then established the logistics of locating a new device in each location plus the specifications of each device based on its usage requirements. It was also important to identify contractual flexibility options based on business status of individual sites to avoid equipment no longer needed if sites closed over time.

Alabare now has a multi-functional device contract at a cost of only £22,000 per annum, a saving of £40,000 each year for 5 years, or £200,000. These funds can now be re- directed towards Alabare services. Auditel has fully managed the contract terminations and removal of existing equipment, which was a time consuming and contentious process.

Karen Bell HR and Corporate Services Manager says “The difference to our budgets is outstanding. I cannot believe now little we are now paying each month for our print contract. This money is now being used to support the homeless, adults with learning disabilities, young people and our veterans”.

Energy

Auditel took over fully managing Alabare’s gas and electricity supplies from a previous broker. The portfolio had not been effectively managed with the consequence of many contractual issues needing to be addressed.

The first electricity market tender in 2017 achieved annual savings of £14,346 for 2 years and the first gas market tender achieved annual savings of £44,763 for 2 years. Annual savings are now running at over £23,000 per annum for electricity and over £23,000 per annum for gas.

Auditel provides a full energy management service, monitoring and checking invoices on a monthly basis and handling all queries and supplier and meter issues including closing of old sites and opening of new sites.  Diligent effort over the last 2 years has resulted in a £14,000 rebate from previous supplies incorrectly charged to Alabare.

Karen Bell says “I saw the £14,000 credit on our accounts and had to query what it was. I was delighted to discover it was as a result of Auditel’s hard work in identifying and claiming these incorrect charges back. Auditel’s monthly fee is more than worth it for the value they deliver back to us”.

Mobile Phones

Alabaré was keen to improve on the level of service they were getting for their mobile communications and asked Auditel to see what could be done. Alabaré had around 170 handsets with a variety of contract end dates. Monthly spends had increased in the previous 6 months, which the charity could not sustain.

The aims of the project were to:

  • substantially increase the quality of service provision
  • ensure best value was received
  • decrease overall costs
  • provide consistency for budgeting
  • review handsets and requirements for the organisation
  • ensure the mobile solution for each user was appropriate and of good value.

Auditel analysed the current contract and user position, negotiated and presented options for either contract termination and/or a staged movement to a new contract, issued a full Invitation to Tender to the mobile market and analysed and presented back a comprehensive Recommendations Report. Alabare chose to stay with the current service provider but with a much-improved Service Level Agreement.

Massive savings of 71% or £29,000 per annum were achieved, money which will be much better spent on delivering the charity’s services.

Fixed line communications

Delighted with this outcome, Alabare then asked Auditel to look at their Fixed Line Communications. Alabaré had lines, calls and broadband connections with BT and wanted to review best value in the fixed line telecommunications market. Despite some lines not yet being out of contract, all services were tendered at the same time, with a view to moving the lines over to a new contract at the right time.

Auditel has access to often unbeatable rates and terms with the telecommunications market and conducted a full procurement exercise.

At the end of the day, Alabaré chose to stay with BT, but not before Auditel had negotiated a better deal that will deliver savings of over 25% or £10,000 per annum going forward.

Flexible, authoritative, effective

The Director of Finance was delighted with the outcomes. “Auditel are flexible, authoritative and effective. We were able to design with Auditel a service to address the cost issues we had identified in a way that best suited us. Auditel’s professionals gave us confidence in dealing with suppliers as an equal rather than as a novice in a particular cost area.”