© 2011 Sixhills Consulting LtdOverview of Aggressive SourcingDrilling down into the detail and undertaking a category-by-category analysis is an essential part of identifying where saving opportunities lieFacilities and InfrastructureFacilities• Space rental• Utilities-electric, gas, heating, water• Maintenance• Security• Cleaning-base building (janitor)• Rubbish removal and specialty cleaning• Cafeteria services• Moving• HVAC/elevator/mechanical• Alterations/capital improvement-construction• Alterations/capital improvement-architects/engineers• Equipment and supplies-systems and equipment• Equipment and supplies-supplies• Signage• Security systems and equipmentPaper and Supplies• Business forms and envelope• General paper• Office suppliesOffice Equipment• Furniture and fittings• Reprographics• Special equipment• Fax machines• Repair and maintenanceDistribution• Postage• Freight and package ("pick and pack")• Warehouse and records management• Express mail• CourierOther Office Services• Presentation/copy centresTelecoms-SpecificInformation TechnologyPersonnel RelatedHealth Insurance &Non-Healthcare Benefits• Death benefits• Disability• Unemployment insurance• Matching contributions• Educational reimbursement• HealthOther Personnel Expenses• Training• Recruitment• Relocation• Funded pension• Clothing & uniforms• Other staff related costsTemporaries• Hourly temps admin.• Contract employeesT&E• Airlines• Hotels• Travel agency• Restaurants• Car rental• Car services, taxis, staff transport• Mileage reimbursement• OtherCategories Requiring Separate ReviewTelecoms Industry ExamplePurchased SpendingAgency Compensation• Advertising agency• Direct mail agencyAdvertising Media• TV and radio• Outdoor and other• Print (magazines/ newspapers)• SponsorshipAdvertising Production• TV• Celebrity talent• Radio and outdoors• PrintOnline Media• Internet website• idTV• MobileDirect Mail/Commercial Print• Pre-production• Pre-press• Artwork• Paper• Envelope printing• Commercial print• Forms printing• Lettershop• Postage• Freight• Storage• List rental/purchaseOther Marketing• Market research• Telemarketing• Catalogue and directory printing• Annual report printing• Promotion materials• Trade shows/ conventions • Public Relations• PublicationsMainframes• CPU• DASD• Communication controllers• Tape and other storage systems• Printers• Terminals• Repair and maintenance-CPU• Repair and maintenance-other• PeripheralsDistributed Computers• PC workstations• Printers• Peripherals• Minis/file savers/network• Repair and maintenanceOther HardwareSoftware• Mainframes-system software• Mainframes-applications software• Distr. computers-softwareTelecomm• Equipment-voice platform• Dedicated lines• Lines and tolls• Other services• Repair, maintenance and installation• Cellular/pagingContract ProgrammingOther Technology Services• Outside data programmers• System/tech. consultant fees• Information agencies• Data entryMarketing, Advertising& SalesInterconnection/Accounting Rates• POI set-up/maintenance• Per minute/byte chargesAccess Network• PoPs• Add/Drop multiplexers• Copper loops/cabinets/poles/ manholes• Microwave links• Base station towers/equipment (mobile)Network Management• Network management systems• Operations centres• Test equipmentSwitching• Civil engineering• HVAC• Circuit switches• RoutersTransmission• Civil engineering, e.g., – Ducting– Trenching– Manholes• Fibre• Transmission equipment• Cross connects• Space segment leases• IRUsBilling/Customer Support Systems• Billing systems• Outbound/inbound call centres• Mediation devicesTerminal Equipment• Fixed handsets• mobile handsets• PBXs• NTUs/xDSL modemsPrimary focus of indirect cost reductionAggressive SourcingP1
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