Impressive savings for Doughty Engineering

LEFT TO RIGHT: Ian Morrison, Expense Reduction Analysts, Julian Chiverton, Director, Doughty Engineering Limited, Chris Coomber,Sue Cooke and David Langston. Expense Reduction Analysts

Doughty Engineering Ltd began the manufacture of products for the leisure industry in 1985, and are now one of the world’s leading manufacturers of rigging, suspension and lifting equipment for film/TV, theatre and concert halls.

David firstly introduced Charles Reid to Doughty Engineering to review Freight and Courier costs. With Charles’s analysis he found 23% average savings. Julian was delighted with this and wanted Insurance reviewed, for which David brought in Chris Coomber, part of Expense Reduction Analysts’ Insurance Cost Management team who specialize in this category. An extensive review of the insurance market was undertaken on behalf of Doughty Engineering. One of the attractive features of Doughty’s risk was their strong adherence to health and safety.

This was reflected in the premiums achieved in the market and whilst Expense Reduction Analysts Insurance Cost Management were not able to present a saving, they were able to demonstrate Doughty’s programme was correctly positioned in the market and subsequently there was no charge for the service. Further categories were also to be reviewed so David contacted other Expense Reduction Analysts’ experts to share their expertise in varying fields. Sue Cooke undertook a review of Packaging, whilst Engineering Supplies were scrutinised by Ian Morrison.

Initially, Julian did not want to change any of the incumbent suppliers. Having to change supplier and re-introduce the company and their level of quality service to a new supplier was considered a daunting prospect as well as the time wasted by ensuring the long term service quality. However on one project another supplier tendered substantially more savings than the incumbent supplier and in the knowledge that Expense Reduction Analysts ensure a smooth change over, with audits throughout the contract period for service quality, Julian decided to make a switch.

Julian continues, “Initially, with one project there were some concerns with the service level, but these were addressed by Expense Reduction Analysts and now the savings justify the initial and short lived pain” “Overall the experience of Expense Reduction Analysts has helped in many ways. We have learnt not to become complacent about supplier relations, as well as keeping the employees “on their toes” and “more aware” of costs. We have also had an improvement in communication with our service providers.”

Julian says. “Looking to the future we will definitely involve the services of Expense Reduction Analysts. Working in partnership with Expense Reduction Analysts over the last twenty months has saved us an average of 20% on the categories they have reviewed. Currently they are reviewing our Aluminium and Stainless Steel and Electricity costs.” Julian concludes.

When David Langston, Expense Reduction Analysts consultant, originally went to see Julian Chiverton, a Director at Doughty Engineering Limited, there was some scepticism that David would find any savings. However, with Expense Reduction Analysts no win no fee guarantee, Julian felt he didn’t have anything to lose. In order to compete with overseas markets, Julian had already looked internally at cost reduction but Expense Reduction Analysts surprised him by finding savings, even in those areas. “The company’s performance is continually growing and therefore additional savings to re-invest into the company’s production facility will help in the continual improvements.” Julian comments.