October 28th 2014
Why-should-I-consolidate-my-technology-suppliers-800

Have you ever considered using just one supplier for all of your technology needs? If you haven’t, then you could be spending more money than necessary. In fact, a study undertaken by Turnstone found they saved a company £65k per year, by consolidating their ICT suppliers.

Forward thinking companies are starting to realise that by consolidating their suppliers, they can save a great amount of money on their overhead – and you could be one of them.

Still not convinced? Take a look at the following benefits that you can gain if your company uses just one supplier….

1. Reduce purchasing costs

The first benefit which tends to be the most attractive, is a reduction in purchasing cost. Take a look at your expenses and find out how much you are currently spending on your IT, mobile, telecoms and connectivity services separately.

In addition to the actual product they are supplying, when you take into consideration tax, delivery, service, and possible shipping costs, this amount begins to add up. Where-as if you were to use just one company, you’d be cutting down on a lot of fees that you probably didn’t even realise you are paying for.

In such a competitive environment, suppliers will do all they can to beat out the competition. So by using just one supplier, you will be able to negotiate a good discount across all products that they are offering. The more volume that you do with one supplier, the better deal you should be able to receive.

2. Reduced procurement and management costs

Not only will you save on outside costs, but you’ll also save on costs within your business. Managing and procuring different suppliers will incur overtime costs, as your employees will have to spend longer organising compliances, data and contracts.

Take your finance department for example. Once the number of transactions decrease, your finance department will only have to work on paperwork and invoicing for one company, rather than spending unnecessary hours dealing with different suppliers and their individual processes.

So the employees who manage accounts payable and receivable, will be able to concentrate on different priorities and it will help simplify their process. Plus, it will free up time for procurement employees to work on more strategic planning.

3. Less risk, better performance

Looking to decrease risk within your business is important, and this is especially true when it comes to IT or telecoms services. Think about what would happen if your telephone lines that are provided by ‘supplier A’ fail, and then your phone systems go down, provided by ‘suppler B’. You’d have to go to the trouble of contacting two different suppliers, and hope that they can both fix the problem, at the same time. In our experience it is often left with the customer to try and decide who is responsible thus increasing the time to restore.

We’ve already blogged in the past about how much money you can lose if your equipment is down, and if the worst happened, you would want the problem to be fixed quickly and efficiently as possible. By using one supplier across all technology services, you’re cutting out the risk of this happening, and if it did happen, you can be certain that the problem will be solved quickly.

Plus if you shop around for the right supplier, you’ll be able to find a trusted company who can offer quality backup features such as the secure Lloyds Cloud, if you ever needed it. Meaning that you’re lowering your company’s risk, while enjoying a better performance all round.

4. Better working relationship

When looking for a supplier to help with your IT, mobile, telecoms and connectivity solutions, one of the most important aspects is to build up an excellent working relationship with them. By using just one supplier for all, the supplier will learn who you are as a company and what you need.

They will go from being a supplier, to a technology partner – and that’s the best relationship you can have. As you’ll be providing them with a bigger contract, your technology partner will have a vested interest in making sure that your company succeeds, and all technology services are catered for.

You should aim to find a technology partner who provides a bespoke service – after all no two companies are the same. Technology solutions provided to you should be cost-justified and custom-fit to match your business needs.

Lloyds IP

As you can see, by consolidating suppliers not only are you saving your company money, but it’s also a more efficient and effective way to work. In the competitive world of technology, keeping one step ahead is important, and that’s why we offer a broad range of services, that are customised to suit your business needs.

Take a look at some of the services we offer:

Services

With Lloyds IP, you’re investing in a life-long partner relationship, rather than a supplier. Contact us today to find out more!