Costa spends big to save big

Costa Group signs $6 million deal with Optus to cut costs and boost efficiency

Costa spends big to save big
Costa spends big to save big

March 3, 2010

The Costa Group is turning to centralised telecommunications services to cut costs and boost efficiency, signing a $6 million deal with Optus over five years.

Under the deal, the family-owned business and one of the nation's largest transport and logistics providers will use one data network for its three divisions operating across multiple sites.

Costa Executive Director Simon Costa expects the decision will improve service delivery, account management, reporting and asset management capabilities and reduce service costs.

The announcement is a major shift from the company's traditional operations, with Costa saying it had used several telecommunications providers in the past.

Costa Group also expects to cut travel costs and its carbon footprint by turning to video conferencing for meetings.

"In terms of time, for example, we anticipate savings of up to 60 percent in a day travel trip, 30 percent for overnight travel and 10 percent for week's travel," Costa says.

The new deal has been signed weeks after the group sent the broom through its executive team after CEO Tim Bolam and four others left the company on January 25.

Geoff Norman has been appointed the chief operating officer as part of a restructure to cut duplication.

The changes eliminated boards in each division under the Costa Group banner, with only one board remaining.

"We how have one group board that will oversee the whole Costa Group," Norman says.

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