Additional profit for Howard Basford is no accident!
Howard Basford provides a full accident repair service for major insurance companies, fleet managers, accident management companies and private motorists. Its modern purpose built bodyshops meet the exacting standards of the modern motor industry.
With an imminent management buyout on the cards which would adversely affect purchasing power, Howard Basford engaged Expense Reduction Analysts consultant Adam Wheatley in October 2002 to review a number of its cost areas. Nick Orr, Finance Director for Howard Basford explains: “When we first engaged Expense Reduction Analysts we were part of Ford and so we challenged Adam and his team to achieve savings against Ford prices. Their ability to do this so quickly established their credibility and ensured that a long and fruitful relationship would follow.
The first set of cost areas to be reviewed were stationery, power and laundry. Nick continues: “We were rather surprised when Diane Lane revealed the true cost of our workwear and laundry contract and even more so when she succeeded in achieving such impressive savings with our incumbent supplier, despite us being under contract. Diane also helped us to reorganise our laundry management to ensure that we now get value for money. Diane then reviewed expenditure upon waste. Of this project Stewart Dale, Internal Controls Manager at Howard Basford, says: “When the directors bring in outside experts to review your area of responsibility it can be an uncomfortable experience, but Expense Reduction Analysts made a real effort to work with the line managers responsible for each area. Howard Basford‘s Chairman, Tracy Howard, adds: “It was Diane’s ability to find such significant waste savings which really alerted me to the Expense Reduction Analysts opportunity as this was an area in which we had already achieved success ourselves.”
Fellow Expense Reduction Analysts consultant Mats Akesson also joined the project team to investigate the profit improvement of consumables and Adam invited Judith Ashurst to review expenditure upon utilities and landline communications. “Introducing Expense Reduction Analysts to so many of our colleagues in the industry was an easy decision to make given the high quality of service and reliability afforded by Adam and his team. Expense Reduction Analysts have gained more than 20 other clients as a result of Howard Basford‘s recommendations. Neil Kirk, Managing Director for Howard Basford In some areas, Expense Reduction Analysts have also been asked to continue providing the service beyond the originally contracted period.
Nick Orr explains: “When you start working with Expense Reduction Analysts you are focused on the savings that you expect them to achieve but their value goes far beyond this with a high level of service throughout their period of engagement, not just with the initial delivery of savings. It is because of this that we have asked Expense Reduction Analysts to continue to provide that service in many of the areas now beyond the original period of engagement. As a result of the exceptionally high level of service Howard Basford have received from Expense Reduction Analysts, they have given Adam a great many referrals, over 20 of whom have already become Expense Reduction Analysts’ clients!
SUMMARY OF SAVINGS
- Stationery: 4%
- Merchants Cards: 14%
- Electricity: 32%
- Gas: 2%
- Laundry: 32%
- Waste: 38%
- Communications: 23%
“It’s easy to forget sometimes that Expense Reduction Analysts has as much purchasing influence as a large organisation because they deliver such a personal service.”