Our team of business analysts have consistently achieved results far beyond our client’s expectations. These successful outcomes have been possible because each project is led by our own consultants who are experts in the categories they review.
Depending on the cost management solutions and options chosen by our clients, cost savings ranging from 15% to 70% have been achieved on goods and services purchases: average savings have been approx. 30%. Where clients have implemented our procurement and contract management software solutions, direct and indirect efficiency gains of up 92% have been achieved.
The following are some examples of the range of projects we have undertaken for industry and government clients. In these case studies, the final decisions about which suppliers to use were made by the client based on detailed analysis and reports provided to them by our consultants.
Please note: Most of our clients prefer not to be publicly identified but are more than willing to provide references to our new clients about projects we have undertaken for them and the results achieved.
PROJECT SAVINGS CASE STUDIES
Insurance – Major Australian Airport
Project: Required a review of the entire current insurance program and assistance with the implementation and management of a Conceptual Statement of Capabilities Proposal for broking and risk management services.
Outcome: A new broker was appointed, policy coverage was improved with over 120 pages of changes made to policy wordings and better service is being provided by the new broker. While there no reduction in annual premium charges arising from the review, importantly but there was no increase in premiums or service fees despite expansion of insured items and significant increases in some insured values.
Project: A prominent accountancy firm with diverse business interests requested us to review their advertising and media expenditure in relation to several nightclubs they owned and operated. They were concerned about the handling of their account by the advertising agency following the loss of a major event sponsorship deal.
Outcome: Our marketing specialist reviewed the media purchasing program. The review revealed the client had been over-charged on their annual advertising expenditure by some $60,000 annually over a period of at least 3 years. It was also found that the client’s advertising agency had misled them about a sponsorship activity which had been a corner-stone in the client’s marketing. The advertising agency was found to have an undisclosed conflict of interest and was promptly sacked by the client. New advertising opportunities were found by our consultant and more favourable advertising rates negotiated with media outlets.
Electricity – National Retailer
Project: A major national retail chain selling automative parts and handyman equipment sought our assistance to reduce their electricity costs. A review of the group’s energy supply arrangements was undertaken following the introduction of the contestable market for Australian suppliers. We conducted a RFT of the group’s behalf inviting eligible suppliers to make new offers of supply.
Outcome: Following the market review, a new energy supplier who offered a more competitive rate and service package was selected by the client. Annual savings of over $600,000 were achieved for the client, as well as recovering material overcharges from suppliers.
Project: A national second-tier bank called on our printing experts to help reduce their annual printing costs which exceeded $800K. A review was undertaken which examined, amongst other things, advertising agency involvement in the production of printed material, internal print production and the services provided by key external printing firms, some of which were long-standing arrangements. A key stakeholder resisted the review, insisting that the bank already had the best supplier and print pricing available. We benchmarked the bank’s current major expenditure items and it was agreed to run a new RFT in which the 14 existing suppliers would be offered the opportunity to make new offers.
Outcome: The main incumbent print supplier was awarded a contract to supply 95% of the bank’s printing needs on a 2 year contract. Within 45 days of making the decision on new supply arrangements, the client bank started receiving the benefit of annual savings of between 30-50% ($290k+) across their main printing requirements.
IT Acquisition – State Health Department
Project: Provide a report and advice on options for financing the supply of laptop computers for 1,500 visiting medical officers (VMOs). The department had a significant short-fall in capital and recurrent funding while, at the same time, it also had contractual obligations to supply IT resources for VMOs to remotely access patient records and related medical information.
Outcome: For the first time in state government financial arrangements, a government agency issued a tender for computer equipment to be supplied under a three year lease and service agreement with a private sector financial institution. The annual recurrent cost of the contract was $450,000 in lieu of a one-off capital expenditure of $3 million. The department saved $1.65 million over the 3 year period.