Expense Reduction Analysts assist in securing annual Environment Agency certification
Ervin Amasteel has been the benchmark for steel abrasives since the 1920s, when John F. Ervin first developed the steel abrasive casting process, which is used by all producers today. The Ervin Test Machine is used by all quality steel shot abrasives producers to compare their performance with others. Ervin Amasteel is probably the largest selling Steel Abrasive brand in the world for shotblasting applications.
“We have undertaken an interesting range of projects for Ervin Amasteel,” says Andrew Brackenbury of Expense Reduction Analysts. “The first project featured Paul Giness’s work on Business Rates for the 2005 listing, which continued forward into the 2010 listing. Going forward, Simon Phippen found savings on Packing and Pallets. And we delivered keener rates and better terms by recommending a change of insurance broker.
“More complex than these, though, and perhaps more important to the business, were Pete Bramhall’s work on Waste and Recycling accreditation and Kevin O’Neill’s on Logistics.”
Pete Bramhall takes up the story: “When I first met with them in 2009, Ervin Amasteel had spotted an opportunity to take scrap steel cans into their feedstock, and to sell the evidence of the reprocessing of this material (Packaging Recovery Notes, or PRNs) back to the original packaging manufacturers and retailers in compliance with UK Packaging Regulations, thus generating a valuable revenue stream. In order to realise this opportunity, Ervin needed to become accredited by the Environment Agency as a re-processor of packaging waste.
Consultation on recycling accreditation repeated every year since 2010
“Securing such accreditation is, of course, a rigorous and sophisticated process. Initially, we were retained to prepare the Business Case and to manage the Application Process, which required building an understanding of their manufacturing processes and ensuring that robust administrative procedures were in place.
“Once that was accomplished, there was a whole raft of Environment Agency criteria which had to be fulfilled and complied with. However, the application process was successful, meaning that Ervin has been able to sell PRNs and to use the resulting revenue to invest in, and further develop, its packaging recycling capabilities.
“Complying with the accreditation, and re-applying for it on an annual basis is a significant overhead, and it is testament to our expertise in this area that Ervin has asked us to repeat this consultative help on an annual basis since 2010.”
Logistics: craneable trailers realised an additional two tonnes per load
Kevin O’Neill of Expense Reduction Analysts expands on the Logistics project: “We had a number of conversations with Ervin over a long period of time – largely around how they should integrate their new plant in Germany into their overall business plan. As part of these discussions, we undertook an exercise to look at the Logistics provision from the UK, which encompassed a detailed analysis of traffic volumes and service requirements for their UK and European Haulage. In the event, we found that Ervin was managing its Logistics very well.
“However, one area that did present an opportunity was their road freight to Italy. Ervin were not entirely satisfied with their current provider. The requirements were straightforward: they needed a reliable service at competitive prices with the capacity and flexibility to manage unpredictable volumes.
“Some research uncovered options that Ervin had not previously considered, and a thorough selection and review process enabled Ervin to choose two operators offering intermodal (road and rail) services. Trials revealed a clear winner. A unique service feature of the selected operator was craneable trailers – road trailers that could be lifted directly onto the train. This equipment configuration increased capacity by two tonnes per load resulting in significantly lower unit costs.”
Bobbie Smith, Customer Service Manager for Ervin Amasteel, sums up the benefits of partnering with Expense Reduction Analysts: “It didn’t take long for a good relationship to develop. Expense Reduction Analysts became attuned to our business and understood our requirements very quickly. I hadn’t expected any savings to be there, but I was delighted by what they managed to achieve on our behalf.”
SUMMARY OF SAVINGS
- Italian Logistics: 13.2%
- Packaging – FIBC: 10.0%
- Packaging – Paper Sacks: 6.1%
- Packaging – Corrugate: 7.2%
- Business Rates (2005 listing): 3.9%
- Business Rates (2010 listing): 5.2%
“Over the years Expense Reduction Analysts have been an excellent resource for Ervin Amasteel. They have been innovative in their approach to cost savings and have helped us realise benefits that we would never have achieved on our own. I’m grateful for their support and have no hesitation in recommending them to others.”