Specialist laboratory expertise the key to savings for GB Ingredients
Expense Reduction Analysts demonstrates a rare depth of knowledge in reviewing the procurement of external testing, lab supplies, workwear and intermediate bulk containers.
Headquartered in Felixstowe, Suffolk, GB Ingredients Ltd. is a leading producer of fresh yeast for the UK market. It has established an unrivalled reputation for innovation – using its leading edge skills in biotechnology to harness nature’s know-how in the search for new bakery ingredients and processes.
“I think that GB Ingredients have been impressed with our knowledge of some very specialist areas,” says Steve Rhodes, Consultant at Expense Reduction Analysts. “Theirs is a specialist business, and we had to prove that we understood their marketplace and knew how to add value to their procurement process.
“I was fortunate to be able to call upon the services of my colleagues, Nilesh Prag and Simon Phippen, to review expenditure in the various designated categories.” Having undertaken an earlier review of Lab Supplies that resulted in GB Ingredients retaining their incumbent supplier at reduced costs, Ainsley Buck asked Expense Reduction Analysts to review the category again. The second review was undertaken by Nilesh Prag, who comments: “We were able to introduce GB Ingredients to some suppliers they were not aware of, who could offer keener prices and more efficient service.
This work also allowed us to give GB Ingredients a comprehensive Lab Supplies procurement blueprint, which continues to inform all of their purchasing in this vital area.” Following the successes with Lab Supplies, Expense Reduction Analysts were asked to review External Lab Testing. “External Lab Testing is certainly a niche area,” continues Nilesh Prag. “GB Ingredients had used the incumbent supplier for a number of years and were not sure what we could add to the process. We agreed to undertake a due diligence exercise for them. Our existing knowledge and network of contacts enabled us to speak with many of the technical laboratories in the UK and report our findings back to the client within a short timeframe.
Reduced cost and a comprehensive Service Level Agreement in place
“The result was that GB Ingredients decided to stay with the incumbent, at significantly reduced cost. They also now have a comprehensive Service Level Agreement in place. “I think it is fair to say that GB Ingredients have been pleasantly surprised by our level of specialist expertise in the area of laboratories, laboratory supplies and testing – a depth of knowledge rare in procurement companies.”
In contrast with Nilesh’s categories, Simon Phippen’s involvement was comparatively straightforward: “Intermediate Bulk Containers (IBCs) are an important item on GB Ingredients’ shopping list, and, as I knew more suitable suppliers than their incumbent, we were able to switch them very smoothly, enhancing service and saving some 26%.”
Steve Rhodes comments: “The fact that GB Ingredients have widened their brief from the original category to include several more crucial areas – and the fact that they have retained us to provide an ongoing service for their External Lab Testing procurement – underlines the value of the expertise that we can bring to organisations with such niche purchasing requirements.”
Ainsley Buck, Finance Controller at GB Ingredients Ltd., summarises the value that Expense Reduction Analysts has added to his procurement: “They haven’t put a foot wrong. With Lab Supplies, for example, they rationalised our supplier base, not only saving us money but streamlining our dealings with the suppliers. In general, our operation has got smaller, and we were starting to receive less than excellent service from some of our bigger suppliers. Expense Reduction Analysts have suggested new suppliers who are a better fit for us now.
“They have taken the time and trouble to understand our business, so they know what will work for us. As Finance Controller, I tend to juggle a number of balls, so it’s priceless to know that, when we have an issue, Expense Reduction Analysts will nail it.”
SUMMARY OF SAVINGS
- Lab Supplies: 27%
- Lab Supplies (revisited): 20%
- External Lab Testing: 30%
- Workwear/PPE: 23%
- Intermediate Bulk Containers: 26%
“Expense Reduction Analysts have been very successful for us all round: they have saved us money; they have recommended process enhancements; and they have put us in touch with a range of suppliers who are a great fit for our needs.”