Helping private health to save energy and reduce costs

Published on Wednesday, 05 October 2011 11:56
Posted by Sally Pearce

A Private Health Care provider with 500 water coolers in 65 hospitals from 27 suppliers had to reduce the number of suppliers to one sole supplier providing standardised equipment and consistent service throughout the UK. They needed to reduce overall expenditure on their water cooler contract, reduce energy consumption and avoid the risk of infection by sourcing the correct specification of equipment

Thirst Link Consulting provided the client with the ideal platform by which to achieve these objectives as well as assisting the client in identifying further cost savings and efficiencies, such as centralised invoicing and MI reporting.

Thirst Link Consulting were appointed by the client after demonstrating our extensive knowledge of the water cooler market, and our ability to secure the most competitive contractual terms without inhibiting the quality of equipment or service.

Our staged process to achieving the client’s objectives within agreed timescales:

Contractual information for 27 incumbent suppliers was collated. Gathering this type of information from so many sites and suppliers can be difficult and time consuming, therefore we used proven strategies to determine who the suppliers were, when their contracts expired and the cost of terminating contracts which had 6 months or more to run until expiry.

Notice was given to the incumbent suppliers and a bespoke tender document compiled by Thirst Link Consulting was then issued to nominated national water cooler suppliers. Thirst Link Consulting prepared detailed qualitative and financial evaluations to present to the client enabling them to choose their own short list of suppliers.

Short list bidders were then invited to present to the client and Thirst Link Consulting after which the client chose a preferred supplier based on the quality of their tender response, presentation, equipment (specific to avoiding the risk of infection) and their overall commercial offer.

Thirst Link Consulting were the conduit between the nominated supplier, the hospitals and incumbent suppliers throughout the entire six week implementation plan saving the client a considerable amount of time and expense.

Final negotiations were conducted by Thirst Link Consulting to reduce the termination costs of existing contracts.

Summary

Energy usage alone was reduced by over 40% per annum. This was achieved by the nominated supplier using energy efficient equipment which had energy saving devices such as a direct chill system that only chills water on demand.

In addition to the energy savings, an average of 15% cost savings per annum over the five year contract was achieved.

Centralised invoicing was implemented resulting in 65 hospitals being relinquished from having to verify and sign off separate invoices.

Management Information reports are issued to the client every month including an updated asset register of equipment, service reports, scheduled filter changes and sanitisation of water coolers.

 

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