• Operational Cost Reduction

What

What do Operational Cost Reduction services and projects offer?

They reduce the impact of general expenses on the company’s costs.
They set some resources free for investment and development.
Specific projects and also general plans of intervention.
Why

Why our Operational Cost Reduction services?

Sharing of goals and results, in a spirit of partnership.
Velocity and flexibility guaranteed by a simple and professional organization.
Reliability and objectivity tested during years of international experience.
Areas

What are the areas of action?

Logistics costs

  • Transports: all methods (road, overseas, air) and all types of service (e.g. courier, full and less-than-truck load, groupage, general cargo).
  • Internal warehouse stocks handling: fleet (e.g. rental or property), storage costs (e.g. in/out pallet, stock costs), porterage and outsourcing.

Costs of packaging and auxiliary to production

  • Packaging (e.g. corrugated, film, pallets, cartons, trays, cellular, tubes, bags)
  • Consumable and Auxiliary (e.g. personal protective equipment, hardware, tools, lubricants, chemicals, electrical and mechanical components)
  • Maintenance: including costs per hour for intervention, travel expenses and spare parts.

General expenses

  • Stationary
  • Food stamps and canteen
  • Payroll processing and provision of temporary workers
  • Facility management (residential and industrial cleaning, green areas, waste management, security, maintenance)
  • Utilities — electricity, water, gas
  • Fixed and mobile telecommunication networks and ICT
  • Fleets and car parks
  • Insurance
Curious about how much you can save? Check it according to the area
How

What is our modus operandi?

Our modus operandi for a standard project of Operational cost Reduction is founded on 3 key-points

  • Definition of the analyzable expenses area: what are the in&out benchmark costs?
  • Definition of the consumption pattern: how do I consume? How do I buy?
  • Definition of the purchasing pattern: how do I buy? How is my policy like towards my providers?
  • Identification of the service SLA (Service Level Agreement): what are the requirements for the procurement?
  • Mapping of the main processes and procedures of the operational users
  • Compliance with the analogous and most up-to-date market’s benchmark
The goal of this phase:
  • Verifying the allignment between the consumption and purchasing patterns
  • Certifying the expenses that is defining that the company’s costs are in line with what the market requires
  • Identifying the savings potentials according to the market’s benchmark
  • Arrangement of the documentation for RFQ (Request for Quotation)
  • Negotiation on behalf of the company with new and current providers
  • Reception and simulation of offers according to the consumption pattern
  • Identification of alternative policies for the purchasing pattern (“what if” scenarios)
  • Ranking of saving solutions according to shared criteria
  • Support to the formalization of contracts
The goal of this phase:
  • The identification of a concrete saving plan shared with your client.
  • Operational support to implement shared solutions
  • Implementation test for these solutions
  • Support and prevention of possible implementation criticalities
  • Analysis of deviations from the forecasts and possible update of the solution and renegotiation
  • Controll of the supply invoices and of the congruence with the defined solution
The goal of this phase:
  • Tangible savings

Fares

Success fee

Sharing of savings achieved during the 1st year of implementation
Interested in a quotation of your potential savings? Ask for your free check-up
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