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NYS Corporate event management team has over 20 years experience making us the perfect choice to handle the organisations and logistics of your event.

NYS Corporate will consolidate your business travel expenditure providing you transparency, variety and a quality service through a tailored solution.

As a conference and meetings specialist we strive to achieve a quality service and cost reduction with a creative flare

NYS Corporate is a specialist Events, Conference and Corporate Travel management company

E-Auctions: Savings Initiative

Overview

NYS Corporate provide venue finding and event logistics services to O2.   This telecommunications, internet and financial services provider is owned by Telefónica, forming part of its Telefónica Europe division.  It is the second largest mobile telecommunications provider in the UK.

O2 identified that their external venue expenditure across the business was in the region of £2m to £3m. The expenditure was directed through a broad variety of channels and was therefore not benefitting from consolidation and effective procurement techniques. NYS Corporate was charged with controlling and reducing this expenditure.

NYS Corporate’s Objectives:

• Deliver appropriate space to meet O2’s requirements.                   • Ensure visibility of expenditure with transparent management information                                                                                                                   • Reduce the unit cost and assist in demand reduction

NYS Corporate aimed to deliver savings of 7% to 12% during year one of the contract, and an additional 3% to 6% in year two.  With total savings of 18% anticipated once procurement is optimised.

The Brief

Two-Tier Cost Savings Methodolgy

Over the first two years of the contract, NYS delivered cost savings for O2 via the following tried-and-tested methods:

• Engaging with key stakeholders and gaining their support
• Collating key requirements, venues and locations
• Delivering immediate savings via NYS rates and procurement techniques
• Collecting and customising Management Information to deliver transparency throughout the entire contract
• Making policy recommendations that will change stakeholder behaviour, and then assisting O2 to implement the new policy in a manner acceptable to all stakeholders

E-Auction

NYS Corporate’s most successful initiative was the implementation of an e-auction to reduce the venue costs associated with O2′s training.

The initiative was instigated by NYS Corporate’s Sales and Marketing Director, Leanne Fowler, after she reviewed O2′s Management Information.  In partnership with the procurement lead, NYS issued an RFP to venues in key locations.  Once the venues replied, NYS collated and reviewed the responses and chased up any missing information (particularly booking terms and conditions) to ensure a comprehensive comparison of each venue could be made.  Meetings were then arranged so that NYS could engage 19 key stakeholders to mutually agreed a shortlist of venues for the e-auction.

It is certain that the success of the Telefónica UK Venue Find project would not have been possible without Leanne and her team at NYS. Leanne worked extremely hard to capture specific project requirements from a demanding, but time elusive Telefónica UK project team. In all my dealings with her, she has been professional, friendly, approachable and always happy to share her knowledge. Once the Telefónica UK requirements had been captured and signed off, it was left entirely to Leanne to make sure all of the venues were vetted. Within 6 weeks after the sign off from Telefónica UK, and ahead of schedule, over 40 venues had been fully reviewed and we had our final Venue listing... Leanne and I were very keen to create a process which both Telefónica UK and the Venues would buy in to – and the key was an open competition via e-Auction to drive down price and increase savings. The auctions we ran were based on 3 requirements, and the Venues competed purely on price to gain the best rank possible for each. We achieved price reductions of around 50% across the board against starting prices - which translates into a 20% saving on our yearly spend. The business and key stakeholders are extremely pleased with the result, and are planning to run our model elsewhere within the business.

Procurement Manager, Telefonica UK Ltd (O2)

Result

NYS Corporate conducted nine e-auctions in total, with each e-auction carefully structured to cover a small enough area to ensure a level playing field for rates comparison.  For example, DDR and 24 hour rates are typically higher in city centres compared to the outskirts, so separate e-auctions were held for Leeds City and Leeds Outskirts. Another key area for O2 was Birmingham and the surrounding area, which NYS opted to divide into four distinct e-auctions to ensure the best rates possible could be achieved. Venue representatives were then contacted by email notifying them that they had been shortlisted, and outlining the E-Auction process. This was shortly followed by a transparent, highly competitive bidding process which drove down prices in all areas.

The e-auctions were a huge success, with savings of up to 50% in each of O2′s key locations.  This included one of their most commonly used venues, the Burlington in Birmingham, where real term savings of 38.2% were achieved against the previous rate.

Overall, the success of the e-auction translated into a 20% saving in O2′s yearly meeting and conference spend.

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