Expense Reduction Analysts initially reviewed current billing levels to establish a benchmark and then thoroughly reviewed both existing and potential suppliers from a cost and service level perspective.

“What has been particularly interesting about Martyn Leisure is that each hotel within the group caters to a different clientele,” says Roy Faulkner, consultant for Expense Reduction Analysts. “Each hotel within the group tends to attract visitors looking for a specific type of holiday, from short breaks to those looking for a boutique hotel experience. This had to be taken into consideration when recommending a new procurement strategy.”

The first phase of the cost reduction review involved a meticulous look at food and catering, by Expense Reduction Analysts food specialist, Andy MacDonald. As part of the process, visits to suppliers’ local depots highlighted those able to provide the products and services most appropriate to the hotels and those able to fulfill specific requirements. A particularly useful exercise was the ‘taste tests’ put on by the suppliers, which proved valuable in ensuring quality requirements were met.

As a result of the review, Martyn Leisure retained the main supplier for its holiday camp in Sand Bay, which accounts for 70 per cent of the group’s spend on food and catering. This supplier also now covers all five locations. This created a win-win situation as Martyn Leisure secured improved pricing, and the incumbent supplier gained a better understanding of the company and its requirements. Savings in catering supplies alone were over 13 per cent, with a similar saving on janitorial consumables.

Savings in marketing print reached almost 37 per cent, with almost 30 per cent for office supplies. A further aspect of the review examined the group’s waste collection contracts, which still had another 11 months to run before they could be re-tendered. However, the mid-contract assessment resulted in savings of 9.4 per cent, following negotiations over current services and billing.

Additional stages of the review will include insurance and a comprehensive review of waste collection suppliers now underway by Pete Bramhall an Expense Reduction Analyst Waste Specialist.