Manufacturing

Project Summary

• Automotive distribution, engineering and software technology company, situated in the Midlands.

• Supported internal procurement team, looking at electricity, gas, telecoms and water costs.

• A saving of 24% was made on a single gas supply cost (equating to £7,130).

• Similar savings have been identified when contracts on other supplies are due for renewal.

• Also implementing significant savings on their telecoms spend of around £17,000 over a three year contract period.

OUR CLIENT

Automotive distribution, engineering and software technology company, situated in the Midlands. The client’s portfolio extends to a broad range of complementary products, technical functions, software solutions, business information and market data toolsets. The business is on an aggressive acquisition campaign due to its success and the market beginning to consolidate.

CLIENT REQUIREMENTS

Although the client had their own procurement team, they were keen to engage external advice and to use expertise in some areas of their indirect spend. The main areas we were asked to look at were electricity, gas, telecoms and water. Gas and electricity costs particularly were continuing to spiral due to the ever-increasing cost prices. However after a short period of consultation we undertook a complete review of their supplier base.

THE PROJECT

From client’s energy billing, we were able to clarify their gas and electricity arrangements and schedule all renewal dates to act upon when required. One gas supply was up for renewal at the time we conducted the review and we were able to secure a new contract on better rates.

We also reviewed their telephony infrastructure and spend, from which we tailored a bespoke proposal for the client identifying £17,000 savings over a three year contract. Furthermore we were able to secure additional facilities for their organisation allowing remote working and better MI reporting.

THE RESULTS

A saving of 24% was made on a single gas supply cost which equated to £7,130 and similar savings are forecast when the contracts on their other supplies are due for renewal.

We have also identified significant savings on their telecoms spend of around £17,000 over a three year contract which we are in the process of implementing on behalf of the customer.

Following the complete review of the supply chain we have implemented a new procurement system including a complete portfolio of documentation allowing the in-house procurement team to ensure these savings are implemented and realised.