Ocean Basket approached EC three years ago, and the EC system has been operational since then. EC is contracted to supply all the new shops, as well as existing ones.
The rental solution works as follows: EC buys back the existing equipment from the company, relieving the company's balance sheet of all its technology equipment, including hardware, software, copiers, fax machines, and, in some cases, even maintenance and support. Once EC owns the equipment, the company rents it from EC at a highly competitive rate.
EC will upgrade the equipment on a time-to-time basis. The company is guaranteed at least one platform jump in technology. At upgrade point, on month 26, the effective interest rate paid will be between 3 percent and 8 percent.
According to Richard Sutherland, account manager at EC: "We have developed a template for Ocean Basket. All the company has to do is place the order for a new shop to be fitted, and we deliver and install the product on time. Testing is done at the EC offices beforehand, which reduces installation time and the possibility of failure on site."
It takes approximately two weeks for a product to be assembled, tested and installed. Each franchise has a separate contract with EC, which is overseen by the Ocean Basket head office. EC is contacted directly if an upgrade is required.
This solution suits the management of Ocean Basket as it removes the IT problems. The 24/7 back-up from EC includes a three-year on-site warranty for hardware, as well as a remote software diagnostic facility.
Andrij de Beer, director at Ocean Basket, emphasizes the importance of IT in the business. "We rely 100 percent on IT to run the business. The service EC is providing is now an integral part of our operations. It understands our business and systems, and we rely on it to be on time every time," he adds.
In terms of financial arrangements for the solution, an exact figure cannot be given, since each franchise holder chooses a different package.