Services

 

Auctions

If your existing master agreement has a remaining term of less than 12 months, you should start planning the auction. The auction described below should be started no later than 6 months before your existing master agreement expires.

1. Recording the usage parameters

A necessary basis for determining the most cost-efficient tariffs is the differentiated and as far-reaching as possible collection of usage data. Any simplification, e.g. in the form of random sampling or the use of consolidated values, has a negative impact on the purchasing result.

We therefore record your billing and individual connection data to be analysed for each participant for a period of at least six months. This data is provided by the inventory provider in their respective standard format and processed by us in a pseudonymised form. Data relevant to data protection can therefore only be read by them.

2. Simulation of the target scenario

Our software analyses all cost-relevant information from the usage data, in particular actual costs and services as well as usage volumes per connection type. All data is checked for consistency and completeness.

Based on the usage data and the service portfolios of the providers selected by the customer as relevant, the most cost-effective tariff-option combinations per subscriber and thus the target tariff portfolio and the target prices are then calculated. The result of the simulation thus provides the essential commercial basis for the auction.

3. Creation of the requirements documents

Depending on the auction design, the requirements include a list of usage parameters relevant to the supplier or the target tariff portfolio and target prices.

Specific additional requirements are also included. These include, for example: the list of mandatory sites for network coverage, desired maximum duration of options, definition of a quota of mobile phone contracts that can be paused, service level agreements, etc.

4. Development of the auction design and implementation of the auction

In the telecommunications market for business customers there is a pronounced supplier oligopoly. Often, due to technological requirements, only one competitor can even be considered as an alternative to the existing provider. The highly restricted competition makes effective market pricing to the detriment of purchasing more difficult.

Moreover, as the cost structures of the suppliers are also very similar and the marginal costs of the services are very low, the existing supplier could "go along" with any offer of the competitor. The competitor would therefore have no chance of winning the customer, with the result that in many cases the competitor would not make any offer at all or at least not an attractive one. The purchasing department would then only have the possibility to accept the non-competitive offer of the existing supplier to extend the contract.

Our auction designs address the problem of this market failure and create a highly competitive environment. This ensures that the customer not only receives tailor-made services, but also the best possible prices from every supplier.

In addition, our designs take into account any specific requirements you may have, e.g. in the form of minimising the probability of a change of supplier while maintaining complete procedural transparency vis-à-vis the suppliers.

5. Contract review and creation of the migration list

With the conclusion of the auction, all commercial and technical regulations are legally binding. After the bidder who won the auction has drawn up the formally final contract, we check the contract for conformity and completeness with regard to the provisions which are the subject of the auction.

In parallel, our system creates the migration list, i.e. the complete overview of the allocation of the tariffs and options calculated as optimal to the respective current users. Based on the migration list, the provider can immediately carry out the corresponding conversion of the tariffs, so that neither purchasing nor IT costs arise in this area.

 

Tariff Optimisation

Even if an auction should not be desired, for example due to an existing remaining contract term of more than 12 months, our software can achieve considerable savings in the clear double-digit percentage range simply by calculating the optimal tariff option allocations. A tariff optimisation is therefore always economically sensible, provided that a relevant high purchasing volume is achieved.

1. Recording the usage parameters

A necessary basis for determining the most cost-efficient tariffs is the differentiated and as far-reaching as possible collection of usage data. Any simplification, e.g. in the form of random sampling or the use of consolidated values, has a negative impact on the purchasing result.

We therefore record your billing and individual connection data to be analysed for each participant for a period of at least six months. This data is provided by the inventory provider in their respective standard format and processed by us in a pseudonymised form. Data relevant to data protection can therefore only be read by them.

2. Simulation of the target scenario

Our software analyses all cost-relevant information from the usage data, in particular actual costs and services as well as usage volumes per connection type. All data is checked for consistency and completeness.

On the basis of the usage data, the current service portfolio and taking into account the contractual provisions on tariff changes, the most cost-effective tariff-option combinations per subscriber and thus the target tariff portfolio and target prices are then calculated.

3. Creation of the migration list

The result of the tariff optimisation is the migration list, i.e. the complete overview of the allocation of the tariffs and options calculated as optimal to the respective current users.

On the basis of the migration list, the provider can immediately carry out the corresponding conversion of the tariffs, so that neither purchasing nor IT costs are incurred in this area.

 

Guarantees and Profitability

Added Value Guarantee

Our technology and auction methods create considerable added value compared to conventional tenders. We are therefore able to calculate our remuneration solely on the basis of this added value. This means that we do not charge a fee for the part of the service/savings that you could presumably achieve with conventional methods; we only charge a fee for our additional service/savings.

Efficiency Guarantee

Since our fee is always a part of the resiliently calculated savings, you are guaranteed economic efficiency. The return on investment for you is usually several hundred percent, the payback period is significantly less than 12 months.

Sustainability Guarantee

A tariff-option-layout calculated by us is not cost-sensitive with regard to the usual fluctuations in use by users; in particular, so-called "Billshocks" are excluded in this context. The necessity of continuous monitoring of the usage or cost behaviour is therefore unnecessary.

Nevertheless, as part of our sustainability guarantee, we offer to carry out a recalculation of the savings after a certain period of time, should they differ from our calculated figure. In the event of deviations that are disadvantageous for you, we will reimburse you proportionately our fee.

 

Time and Effort

For a tender/auction to be meaningful, a change of supplier must not be ruled out. For this reason alone, the purchasing project should be started about six to twelve months before the planned start of the new contract.

Nevertheless, due to our high degree of automation and the very high methodological efficiency of our auction designs, almost all the effort and expense that you would have to invest in a conventional tender is eliminated.

Our technology takes over all tasks of data acquisition and analysis as well as offer evaluation. Our auction designs eliminate the need for vendor workshops, repeated negotiation rounds and unnecessary discussions.