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Case Study for a vehicle body and trailer Manufacturer

Date post: 28-Jan-2018
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Table of Savings Category Saving (%) Stationery 36% White Cotton Wipers 37% Engineering Consumables - Fasteners & Fixings 5% Engineering Consumables - Welding 26% Engineering Consumables - Special Fixings 14% Engineering Consumables - General 19% Plywood 12% Graphic Supplies 16% Electrical Wire 6% Air Fittings 17% Wire Ropes 7% Driven profits for Don-Bur Expense Reduction Analysts Success Stories Expense Reduction Analyst Mark Davis first began his partnership with Don-Bur over three years ago in order to reduce their expenditure costs. Financial director for Don-Bur, Rick Bloomfield initially engaged Mark to review stationery and white cotton cleaning wipes. Great results were achieved for Don-Bur when over 35% worth of savings were found and implemented in each category. Left to Right: John Stringer, Mark Davis, Rick Bloomfield, and Bruce Windeyer This gave Mr Bloomfield the confidence to engage Expense Reduction Analysts in larger, annual expenditure categories. Mark continued to review expenditure in engineering consumables, the first being fasteners and fixings, a category in which costs are in the high six figures annually. Due to the high volume of data for analysis being covered Mark invited fellow Expense Reduction Analyst Bruce Windeyer into the project to assist in profiling the current purchase data. Despite the steeply rising steel market at the time, Expense Reduction Analysts achieved a good result saving Don-Bur 5% on fasteners and fixings with the incumbent supplier. As quality remains a top priority for Don-Bur, two of the key objectives were to ensure that disruptions were kept to a minimum and the quality of goods was not compromised. Mr Bloomfield proceeded to suggest further engineering projects to be undertaken, and as a result Mark also invited fellow Expense Reduction Analysts consultant John Stringer who had many years experience within the engineering sector prior to joining Expense Reduction Analysts and was therefore an ideal candidate to review the categories in engineering consumables. The categories covered general engineering consumables, through to specific consumables such as welding and special fixings. John, having carried out extensive research was able to achieve excellent savings that ranged from 14% to 26%. Mr Bloomfield has been highly impressed with all the work Expense Reduction Analysts has done for the company, he states; “I am perfectly happy to share the savings made with Expense Reduction Analysts as these savings would not have been achieved in the same timescales with our own resources. Their involvement during the audit period also provides a second check for our accounts department that correct prices have been invoiced and when not the case, Expense Reduction Analysts were tenacious in their pursuit of credits on our behalf”. As a result of the savings achieved, further projects have followed in the areas of Plywood, graphic supplies and couriers. The client had a free ‘health check’ on their courier distribution costs, since Expense Reduction Analysts could not improve upon their current rates, due to the nature of the client’s traffic. During the last three years, Expense Reduction Analysts has also carried out numerous energy cost renewal negotiations on a fixed fee basis, and their relationship continues moving forward. Don-Bur Profile Don-Bur (Bodies & Trailers) Ltd, with turnover circa £40 million based from its main 18-acre manufacturing plant and 3 satellite sites in Stoke-On-Trent, offers the complete one-stop shop to the commercial vehicle trailer and rigid vehicle bodybuilding industry. find extra profit www.erauk.net Rick Bloomfield “These savings would not have been achieved in the same timescales with our own resources.”
Transcript
Page 1: Case Study for a vehicle body and trailer Manufacturer

Table of Savings

Category Saving (%)Stationery 36%White Cotton Wipers 37%Engineering Consumables

- Fasteners & Fixings 5%Engineering Consumables

- Welding 26%Engineering Consumables

- Special Fixings 14%Engineering Consumables

- General 19%Plywood 12%Graphic Supplies 16%Electrical Wire 6%Air Fittings 17%Wire Ropes 7%

Driven profits for Don-BurExpense Reduction Analysts Success Stories

Expense Reduction Analyst Mark Davisfirst began his partnership with Don-Bur over three years ago in orderto reduce their expenditure costs.Financial director for Don-Bur, RickBloomfield initially engaged Mark toreview stationery and white cottoncleaning wipes. Great results wereachieved for Don-Bur when over 35%worth of savings were found andimplemented in each category.

Left to Right: John Stringer, Mark Davis,Rick Bloomfield, and Bruce Windeyer

This gave Mr Bloomfield the confidence toengage Expense Reduction Analysts in larger,annual expenditure categories. Mark continuedto review expenditure in engineeringconsumables, the first being fasteners andfixings, a category in which costs are in thehigh six figures annually. Due to the highvolume of data for analysis being coveredMark invited fellow Expense ReductionAnalyst Bruce Windeyer into the project toassist in profiling the current purchase data.

Despite the steeply rising steel market at thetime, Expense Reduction Analysts achieved agood result saving Don-Bur 5% on fasteners and fixings with the incumbent supplier. As quality remains a top priority for Don-Bur, two of the key objectives were to ensure thatdisruptions were kept to a minimum and thequality of goods was not compromised.

Mr Bloomfield proceeded to suggest furtherengineering projects to be undertaken, andas a result Mark also invited fellow ExpenseReduction Analysts consultant John Stringerwho had many years experience within theengineering sector prior to joining ExpenseReduction Analysts and was therefore anideal candidate to review the categories inengineering consumables.

The categories covered general engineeringconsumables, through to specificconsumables such as welding and specialfixings. John, having carried out extensiveresearch was able to achieve excellent savings that ranged from 14% to 26%.

Mr Bloomfield has been highly impressed with all the work Expense Reduction Analysts

has done for the company, he states; “I amperfectly happy to share the savings madewith Expense Reduction Analysts as thesesavings would not have been achieved in thesame timescales with our own resources.Their involvement during the audit period also provides a second check for our accountsdepartment that correct prices have beeninvoiced and when not the case, ExpenseReduction Analysts were tenacious in theirpursuit of credits on our behalf”. As a result of the savings achieved, further projects havefollowed in the areas of Plywood, graphicsupplies and couriers.

The client had a free ‘health check’ on theircourier distribution costs, since ExpenseReduction Analysts could not improve upontheir current rates, due to the nature of theclient’s traffic. During the last three years,Expense Reduction Analysts has also carried out numerous energy cost renewalnegotiations on a fixed fee basis, and theirrelationship continues moving forward.

Don-Bur Profile

Don-Bur (Bodies & Trailers) Ltd, with turnovercirca £40 million based from its main 18-acre manufacturing plant and 3 satellitesites in Stoke-On-Trent, offers the completeone-stop shop to the commercial vehicletrailer and rigid vehicle bodybuilding industry.

find extra profitwww.erauk.net

Rick Bloomfield

“These savings would nothave been achieved inthe same timescales withour own resources.”

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