What does train wifi have to do with procurement?
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PA Consulting's Simon Whalley, commercial and procurement strategy expert, discusses train wifi and procurement in an article by Juliette Rowsell in Supply Management.
Commenting on this, Simon explains: "In an environment facing cost pressures, and therefore the need to find efficiencies, contracts which are due for renewal, or have termination for convenience clauses will be an area of focus, especially for non-essential items such as wifi."
He adds: "If rail companies can exit the contract for something that is non-essential, reduce the cost base without impacting on revenue, then removing wifi is a logical option. However, such cuts could mark the beginning of a lack of focus on customer experience."
Simon goes on to says: "If train operators reduce the benefits of train travel at the same time as the government is trying to encourage more people on to public transport as a sustainable travel alternative, cutting services and closing lines will reduce revenue as fewer people will travel”.
He concludes: “A fundamental decision is required as to the purpose the railway serves in Great Britain. Is it a piece of critical national infrastructure to provide connectivity to communities and businesses, or is it a commercial operation that is run on the basis of commercial viability?”
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