Charlesworth reviews costs to enhance competitiveness (published Daily Telegraph 29 September 2009)

Date: 6th January, 2010.

With a 6% increase in sales during the last year, Wakefield-based Charlesworth Group is one UK business

that continues to grow during the downturn following a strategic review of costs that have enhanced its

competitiveness

Charlesworth Group is one of the UK’s oldest and most successful print and publishing companies with operations here,

in China and America.

UK Managing Director, David Boothman, said:

“We’ve grown enormously since we were founded in 1928. We now operate on three continents and have ambitions to grow further. But with this

growth comes significant accumulated costs and so we decided to examine these in detail to ensure we were managing them effectively – an exercise

that has led to annual savings of £186,000.”

The cost saving programme involved a forensic analysis of the company’s business expenditure with suppliers. The analysis was undertaken by Expense

Reduction Analysts, the UK’s largest cost and purchase management consultancy, and took into account the need for Charlesworth group to maintain a

first class customer service.

Boothman added:

“Transport, for example, is a significant cost area that’s critical to our business because it’s a key part of our service to clients. In reviewing our

transport costs we achieved a 29% cost reduction, whilst retaining our courier supplier and improving our contract for palletised freight.

“In addition, we made savings of 21% on paper, 14% on ink and press sundries and 12% on waste disposal costs – these are all significant cost areas

for a printer.

“The end result is that we’re now more cost efficient and the savings we’ve made enable us to compete better in the market place.”

Adam Wheatley, a consultant with Expense Reduction Analysts, who carried out the cost review, commented:

“Savings go straight on the bottom line – to achieve the same impact on the bottom line of the £186,000 saved, the company would have had to

increase sales by £3.7M, operating on an average margin of 5%.”

With a 6% increase in sales during the last year, Wakefield-based Charlesworth Group is one UK business that continues to grow during the downturn following a strategic review of costs that have enhanced its competitiveness.

Charlesworth Group is one of the UK’s oldest and most successful print and publishing companies with operations here, in China and America.

UK Managing Director, David Boothman, said: “We’ve grown enormously since we were founded in 1928. We now operate on three continents and have ambitions to grow further. But with this growth comes significant accumulated costs and so we decided to examine these in detail to ensure we were managing them effectively – an exercise that has led to annual savings of £186,000.”

The cost saving programme involved a forensic analysis of the company’s business expenditure with suppliers. The analysis was undertaken by Expense Reduction Analysts, the UK’s largest cost and purchase management consultancy, and took into account the need for Charlesworth group to maintain a first class customer service.

Boothman added: “Transport, for example, is a significant cost area that’s critical to our business because it’s a key part of our service to clients. In reviewing our transport costs we achieved a 29% cost reduction, whilst retaining our courier supplier and improving our contract for palletised freight.

“In addition, we made savings of 21% on paper, 14% on ink and press sundries and 12% on waste disposal costs – these are all significant cost areas for a printer.

“The end result is that we’re now more cost efficient and the savings we’ve made enable us to compete better in the market place.”

Adam Wheatley, a consultant with Expense Reduction Analysts, who carried out the cost review, commented: “Savings go straight on the bottom line – to achieve the same impact on the bottom line of the £186,000 saved, the company would have had to increase sales by £3.7M, operating on an average margin of 5%.”