Jon3G
26th May 2005, 06:02 PM
Dextra has snatched a £20m accessories contract with O2, out-muscling previous incumbents Ora and Clockwork.
The contract, the biggest accessories distribution deal in two years, involves the full range of accessories from fascias to car kits, and covers both O2s retail and corporate sales.
O2 put the contract up for tender before last Christmas prompting fierce pitches from potential suppliers. Kondor teamed up with Data Select in the bidding war to put up a combined offer, going up against Dextra, Ora, Clockwork and Unique Accessories.
Dextra previously supplied O2s retail business, but has now scooped the more lucrative corporate business as well.
A spokesman for O2 confirmed that a deal had been agreed with Dextra, adding: Having the bulk of accessory supply from one provider will be more efficient and generate cost savings.
Group MD for Dextra/4u Mark Ormerod said: Weve been in discussions with O2 for the last six months. Theres been a lot of work put in on both sides. But this is a good result for the sales and marketing team.
The O2 corporate business accounts for between 45% and 50% of Oras sales, Mobile understands.
Bob Johnson, Oras recently appointed sales director, said: Obviously were disappointed to lose the business but the profitability margin was quite low.
It is not known whether the shortfall will force Ora to cut jobs or costs elsewhere, but Johnson insisted: We wont need to make significant changes. He said the company was trying to become less dependent on its large O2 and Orange accounts by building up its base of independent dealers.
It is thought that Ora will now make an aggressive pitch for the BT Mobile car-kit contract which has come up for grabs. Ora is also in discussions with another major network and several manufacturers, Johnson added.
Clockwork, which shared the contract with Ora, is also thought to have been dependent on the O2 contract for around half of its business, but the company declined to comment.
© Copyright 2005 : Noble House Media Ltd
http://www.mobiletoday.co.uk/artman-test/publish/article_388.shtml
The contract, the biggest accessories distribution deal in two years, involves the full range of accessories from fascias to car kits, and covers both O2s retail and corporate sales.
O2 put the contract up for tender before last Christmas prompting fierce pitches from potential suppliers. Kondor teamed up with Data Select in the bidding war to put up a combined offer, going up against Dextra, Ora, Clockwork and Unique Accessories.
Dextra previously supplied O2s retail business, but has now scooped the more lucrative corporate business as well.
A spokesman for O2 confirmed that a deal had been agreed with Dextra, adding: Having the bulk of accessory supply from one provider will be more efficient and generate cost savings.
Group MD for Dextra/4u Mark Ormerod said: Weve been in discussions with O2 for the last six months. Theres been a lot of work put in on both sides. But this is a good result for the sales and marketing team.
The O2 corporate business accounts for between 45% and 50% of Oras sales, Mobile understands.
Bob Johnson, Oras recently appointed sales director, said: Obviously were disappointed to lose the business but the profitability margin was quite low.
It is not known whether the shortfall will force Ora to cut jobs or costs elsewhere, but Johnson insisted: We wont need to make significant changes. He said the company was trying to become less dependent on its large O2 and Orange accounts by building up its base of independent dealers.
It is thought that Ora will now make an aggressive pitch for the BT Mobile car-kit contract which has come up for grabs. Ora is also in discussions with another major network and several manufacturers, Johnson added.
Clockwork, which shared the contract with Ora, is also thought to have been dependent on the O2 contract for around half of its business, but the company declined to comment.
© Copyright 2005 : Noble House Media Ltd
http://www.mobiletoday.co.uk/artman-test/publish/article_388.shtml