Organisations are successfully using technology that requires no user training, no supplier education and operates on a low investment Software-as-a-Service (SaaS) model - hosted/managed off site.
It is a widely accepted fact that any product from any sector passes through a lifecycle, from development through to introduction and on into decline.
However, an often forgotten fact is that as technology ages, so its price quickly comes down in a bid to buoy sales as newer technology is introduced. Does this mean that we're all getting a fair deal from cost plus agreements?
The cost plus agreement usually sees a medium to long term transparent arrangement between supplier and buyer, usually between 3 - 5% above the cost price.
However, as the dynamic nature of the technology sector means that IT hardware and software costs fluctuate hugely, the cost plus agreement could become anything but transparent.
With IT price and availability changing on a daily basis it is increasingly difficult for buyers to keep a real-time grasp on exactly what they're purchasing and whether they are getting value time after time.
To that end aggregation technology exists in the marketplace that empowers buyers with the knowledge to police their preferred suppliers to ensure they are getting the deal they agreed.
It is this type of technology that can provide efficiency gains on many levels, from better product in-cost to time savings associated with finding the best priced product on any day, to enable departments to stretch the reach of their IT budgets.
Organisations are successfully using technology that requires no user training, no supplier education and operates on a low investment Software-as-a-Service (SaaS) model - hosted/managed off site.
This type of market intelligence technology offers product lifecycle functionality like stock and price tracking. The bottom line is that buyers no longer need to purchase at the highest price. It also gives them granular levels of product and market knowledge to rationalise whether they need to pay a premium for the newest and highest specification products. An example of this technology is Mercato ITelligence, which is one Tool within a fully integrated solution.
Uniquely, Mercato allows users to input their own suppliers' product prices before the solution automatically conducts a price and stock comparison with over 150,000 products across the UK's ICT supply chain. Buyers can now negotiate with suppliers from a position of strength.
Essentially, there is no need to be left in the dark when it comes to securing value as part of a best practice approach to procuring IT. Tools exist in the marketplace that will add value to a buyers role by empowering them with market intelligence for improved negotiating and policing of purchasing agreements.
