10 Jul Office Equipment Lease and Service
A large non-profit lowers its cost of operation by almost 35%
Current State and Challenges
A large non-profit organization with multiple locations, has several ongoing lease and service contracts with different expiration dates. Some of these lease contacts have been executed with different vendors and with varying terms and conditions. There are different and increasing service rates applied in each location with no service level agreement in place. The equipment throughout the organization is not standardized and different accessories, features and lack thereof is contributing to the decrease in efficiency and an increase in the daily labor cost.
The CFO of the organization enters into an agreement with OTP realizing the enormous challenges and time consumption involved in handling the internal financial audit, determining the exact needs and requirements of each department, configuration a detailed scope of work as well as defining a procurement, contract review and implementation process. OTP conducts a detailed financial analysis and audit of all the contracts and equipment in place, creates a scope of work geared directly towards the exact needs and requirements of each department, creates and administers a comprehensive RFP on behalf of the client. OTP also participates in the evaluation, comparative analysis and selection phases of the project.
OTP implements a new service level agreement between the selected vendor and the client in order to preserve their best interest for the term of the new contract. OTP creates and implement an accurate scope of work which can potentially be used in future procurement of office equipment by client. OTP uncovers several areas of concern and addresses them by administering a comprehensive RFP process. OTP increases efficiencies related to office equipment by more than 40% and reduces the client’s associated operating expense dramatically by almost 35%. The CFO implements a new policy to put in controls on all purchasing orders going forward and ensuring OTP’s involvement on most large ticket items and contracts on an ongoing basis.