Great profit improvements for Finnveden
Finnveden is an international engineering group which specialises in the supply of fasteners to the European automotive industry and employs 1800 people within production units across Europe and China. The Finnveden Bulten operation in the UK is a Full Service Provider (FSP) to both Ford and Nissan with an extensive range of metallic fasteners for use in chassis and engine manufacture.
The automotive sector‘s demand for year on year cost reduction from their suppliers places huge challenges on component supply companies to sustain profitability to invest in future product development. Richard Dixon, Financial Director, explains: “We believe that all business costs should be challenged on a regular basis and we were therefore keen to investigate our cost base in more detail however as a small company we do not have the resources to employ rigorous cost analysis of our own spending patterns more than once a year. We felt that by engaging Expense Reduction Analysts we could access a unique wealth of knowledge and market expertise to enable us to identify profit leaks and profit improvement opportunities within our overhead expenditure and utilise Expense Reduction Analyst‘s unrivalled buying influence to secure improved prices and service levels.”
“We are extremely satisfied with both the process followed and the results achieved by Expense Reduction Analysts. Neill Summerfield, the Expense Reduction Analyst Client Manager, kept us informed of the progress of each project at every stage and made the benchmarking, tendering, recommendation and implementation phases completely transparent.
“Expense Reduction Analysts always demonstrates a thorough understanding of our needs checking at several stages of the process to ensure that they have captured our requirements in detail and that any solution proposed by Expense Reduction Analysts will meet with our acceptance. Expense Reduction Analysts specialists have current industry knowledge at their fingertips and an aggregated buying influence greater than any individual business.”
SUMMARY OF SAVINGS
- Office Supplies: 30%
- Gas: 19%
- Electricity: 28%
- Packaging – Labels: 51%
- Packaging – Cartons: 19%
- Packaging – Pallets: 9%
- Packaging – Bags: 7%
- Packaging – Sundries: 12%
- Packaging – Labels (Revisited): 39%
“We know that for each project Expense Reduction Analysts have an expert in that particular field and this re-assured us that they would not sacrifice service levels in our search for better pricing.”