“Smart” Phone – Lower total cost of ownership.

“Smart” Phone – Lower total cost of ownership with next-day swap service is not only the smart choice – it’s the only choice!

When a large high street food retailer came to Jade about their requirements in relation to their smartphone strategy, they had a number of challenges:

Like every business, cost management, service, and value for money were critical.

They had to consider operational and cost efficiencies. Like most retailers, they wanted to ensure the services they were buying into were providing value to the business and that they were not paying over the odds.

The mobile strategy comprised of:

  • 500 smartphones owned by the business on a three-year refresh cycle
  • A SIM-only deal from their provider.

This presented significant issues in that the number of smartphones meant they did not qualify for an Enterprise support agreement – so, if phone stopped working or was broken, the user had to send the device to the IT department, who then had to take the phone to get repaired; dropping it off and picking it up, and then take it back to the user. This often meant the user was without a phone for 7 – 10 days. This process was time-consuming and inefficient.

When you have a network of stores across the UK, and Europe, as well as a global export business, connectivity is crucial to productivity. With at least one phone per week either breaking or getting damaged, their current solution was not serving them.

The challenge was this: the client needed a more cost-efficient solution for their business that had a much higher support level than the current model, without the initial upfront purchase costs of phones, which could total in excess of £350,000 when the three year refresh came around. Not to mention the hassle of having to dispose of or recycle the phones at the end of this period.

Jade discussed their comprehensive “BOS model”, which is based on a monthly subscription and service support model. Initially, the key attraction was that they could rent the devices rather than buy them without a large capex outlay.

In addition, the BOS model also provides:

  • Critical support with wrap-around services – including a next-day swap making life easier for the team and ensuring people are not left without a key communication tool
  • Logistics – getting the device to users
  • Handing-over the devices at the end of the contract.

Competing with the supplier themselves

While Jade was extremely proud of the solution they were able to present, they found themselves up against the smartphone supplier themselves. And they were undercutting them on price.

Seeking to understand what the other supplier had offered, Jade discovered that they were cheaper per device on a monthly subscription basis but still failing to offer the high service level and support that Jade was offering. Working off the average number of repairs the client had disclosed it was calculated that, despite coming in slightly higher per month per device, the total ownership cost of Jade’s offering would actually save them an enormous £11k every 24 months.

The end result

Jade came out as the clear winner. The client secured 500 brand new smartphones on a monthly subscription, with next-day swap service at no additional cost; saving them, on average, £11k every 24 months.

It is through our ability to understand our customers that Jade succeeds. We work hard to understand their business, their challenges, their objectives, and we work to provide technology and services which helps to overcome their needs with a much lower total cost of ownership. As a result, we can boast low attrition rates; when we win clients, we care for them on a long term basis.