Syndicated Purchasing Network Printers Multifunction machines and Copiers

1
Syndicated PurchasingNetwork PrintersMulti-func
tion machines and Copiers

• Christchurch City Council Ricoh
• Mohammed Sayeed
• CCC Support and Customer Services Manager

2
(No Transcript)
3
Mike Pollock, Managing Director Ricoh NZ
4
The Problem

• Local authorities
• In the South Island negotiating individually with
  vendors and suppliers to purchase IT equipment
• Small local authorities
• Limited resources
• Small purchases
• Unable to negotiate significant discounts

5

• Christchurch City Council second largest local
  authority in New Zealand
• Network meetings highlighted the problem
• Desire to support neighboring local authorities

6

• Discussions interest in a syndicated purchasing
  approach
• Regional Purchasing Group (RPG) has been formed
  involved 10 organisations
• Christchurch City Council took a leadership role
• CCC contract up for renewal RFP process
  extended to the RPG for the new contract

7

• Ricoh New Zealand were successful tenderer
• strong partnership has evolved
• Ricoh agreed to further evolve the RPG process
• actively seeking new participants
• Contacted IT managers and procurement units of
• other local authorities and council-controlled
• organisations (CCOs)
• Ricoh also undertook to promote RPG when
• responding to other RFPs and promote the
• benefits of joining

8

• Benefits to RPG
• Cost Savings
• Reduced staff time
• Members still deal direct with Ricoh for
• ongoing service and support
• Each member has dedicated account
• managers

9

• Key to success Ricoh as vendor
• Proactively promoted the benefits of RPG
• Ricoh contacting local authorities directly
• Adjusted terms of agreement to reflect changes in
  the market members always advantaged by the
  contract
• Negotiated further discounts as RPG grown

10

• RPG
• Now 20 participating organisations
• Members local authorities, council-owned
  organisations, community not-for-profit
  organisations
• Door remains open for other to join in the future
• Project success extending the process to other
  contracts and RFPs

11

• RPG members
• Hurunui District Council
• Timaru District Council
• Waitaki District Council
• Waimakariri District Council
• Kaikoura District Council
• Selwyn District Council
• Mackenzie District Council
• Central Otago District Council
• Southland District Council
• Waimate District Council

12

• Redbus Ltd
• Canterbury Development Corporation
• Citibus Newton
• Otago Museum
• Jade Stadium (Vbase)
• Christchurch Community House
• City Care Limited
• Destination Queenstown
• Electricity Ashburton Ltd
• White Stone Ltd
• Riccarton Bush Trust

13

• Feedback
• Syndicated Purchasing is a great way to save
  money and time. Our organisation has benefited
  from the power of collective purchasing through
  this arrangement. It has allowed us to spread our
  meager budget even further. Lindsay Prescott,
  ICT Manager, Canterbury Development Corporation.
• For a smaller organisation such as ourselves
  syndicated purchasing delivers a couple of
  benefits reduced cost of search and reduced
  purchasing costs. Donald Ellis, Information
  Customer Service Manager, Waimakariri District
  Council.

14

• This initiative allowed Ashburton District
  Council to access pricing that would usually only
  be offered to a council with much greater buying
  power. It also gave Christchurch City Council
  greater scope in negotiating prices and service
  levels by increasing the potential budget. The
  potential for increasing the scope of the
  syndicated purchasing is enormous and I would be
  keen to encourage this development. Steve
  Allen, Information Services Manager, Ashburton
  District Council.

15

• The basics
• The RFP must state the successful tenderer will
  allow others participants in the agreement
• Everyone must agree to a lead local authority,
  preferably a large one
• The end goal must be to negotiate with the
  successful supplier to reduce the price as new
  participants join and sales increase

16

• Choice of vendor imperative their investment in
  and commitment to making the agreement work is
  paramount
• Benefits must extend beyond just pricing
• The RPG is now undertaking further negotiations
  for the purchase of personal computer hardware
  and software licensing
• State Services Commission has a number of
  agreements local government can participate in

17

• Local government needs to develop more
  collaborative ways of working to further develop
  such opportunities
• Because everyone wins

18
Any Questions?
19
Contacts

• Mohammed Sayeedmohammed.sayeed_at_ccc.govt.nz
• Matt WoolstonBranch Manager, Ricoh
  Christchurchmwoolston_at_ricoh.co.nz