Sole venue sourcing and strategic meetings management provider delivering an average annual savings rate of 18%.
Our customer is a leading digital communications company with over 25 million customers and 450 retail stores.
This customer had an external venue expenditure across the business in the region of £2m to £3m per annum. Prior to appointing NYS, this expenditure was directed through a broad variety of channels, meaning that they weren’t benefitting from consolidation and effective procurement techniques. Enter NYS; tasked in controlling and reducing this expenditure.
Venue find solution
Working in partnership as our customer's sole venue sourcing and strategic meetings management provider since 2010, their key objectives have been to:
Deliver appropriate space to meet requirements.
Ensure visibility of expenditure with transparent management information.
Reduce the unit cost and assist in demand reduction.
By optimising expenditure, we aimed to deliver an average annual savings rate of 18%.
We have developed a close working relationship with NYS over the years and it was evident during the process they fully understand our needs and continue to drive new innovations.
Events Team Lead, Telecommunications customer
NYS achieved substantial savings for our customer 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 through the entire contract.
Making policy recommendations that will change stakeholder behaviour, and then assisting them in implement the new policy in a manner acceptable to stakeholders.
There was a number of key achievements that came from our methods, including the development of meetingsPro in response to requests from bookers for a receptive venue sourcing and submission tool. With over 23,270 venues in the UK to choose from, the booker could instantly filter according to room capacities, star ratings and layouts. Other enhancements included interactive feedback sharing, live data feeds and a budgeting facility, providing ultimate convenience to the booker.
The most successful initiative however, was the implementation of an e-auction to reduce the venue costs associated with training.
In partnership with the procurement lead, an RFP was issued to venues in our customer's key locations. NYS collated and reviewed all responses, chasing up on any missing information (particularly booking T&Cs) to ensure a comprehensive comparison of each venue could be made. Stakeholder meetings were then arranged, so that both NYS and 19 key bookers could mutally agree a shortlist of venues for the e-auction.
Since the partnership began, NYS has saved our customer in excess of £2.6million, with savings rates currently in excess of 19% per annum, beating the objectives NYS set out for ourselves. Here’s how we did it:
Nine e-auctions were conducted in total. Each carefully structured to cover a small enough area to ensure a level playing field for rates comparison. With DDR and 24 hour rates typically higher in city centres compared with the outskirts, separate e-auctions were held in each, ensuring
the best rates possible were 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 this telecomm giant'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.