Great savings for Howard Kennedy
Howard Kennedy is a leading London law firm with 54 Partners and has particular strengths in Real Estate, Dispute Resolution, Corporate & Commercial Work.
Following successive mergers, first with West End neighbour Finers Stephens Innocent then with boutique firm CKFT, Howard Kennedy invited ERA Legal to assist in the post-merger integration of Records Management services and Office Supplies prior to a move to prestigious new offices at No.1 London Bridge.
ERA’s relationship with Howard Kennedy is now into its sixth year.
As is often the case following merger, Howard Kennedy had multiple suppliers of Records Management services. As well as widely diverging commercial terms and exit costs, Howard Kennedy recognised the process and compliance benefits that could be accrued by consolidating all files with a single supplier.
ERA Legal set about unbundling Howard Kennedy’s contractual arrangements to provide a clear position statement with the prospective benefits that could be derived and set against the cost of change. The first successful change presented to Howard Kennedy was a £270,000 write down of potential exit charges prior to proceeding to tender.
On completion of the tender ERA Legal presented Howard Kennedy with a series of options to consolidate Records Management services with one of the three existing suppliers or to move to a new supplier. Howard Kennedy’s Archivists were involved to rank the relative merits of the existing incumbent suppliers before a decision was made to select a preferred supplier from one of those three.
ERA Legal managed the migration of boxes to the preferred supplier over an eight-month period, dealing with any matters arising in the transfer and day to day retrieval requests along the way.
The net benefit to Howard Kennedy was six-figure saving each year with a market leading 5-year Fixed Storage Tariff and the eradication of Exit Charges at the expiry of the live storage contract.
Subsequently, Howard Kennedy engaged ERA Legal to negotiate the terms for a deep store destruction exercise. ERA Legal adopted an innovative approach by re-gearing the existing storage contract. This projected the market leading storage tariff further into the future, eradicated a deep storage contingent liability in excess of £300,000 and arranged for the destruction of 10,000 boxes at nil cost.
The merger of three distinctive firms each with their own suppliers and buying habits presented Howard Kennedy with the task of leveraging savings whilst at the same time satisfying the needs and preferences of over 250 fee earners.
ERA Legal worked with Howard Kennedy’s Facilities Team to define a ‘Core List’ of products used across the newly merged firm and consolidated this into a tender schedule which would meet users demands.
Once this task was completed ERA Legal performed a tender with the UK’s largest Office Supplies companies resulting in an award to a new supplier. Working with the supplier to trial new products and minimise the opportunity for maverick buying Howard Kennedy benefitted from audited savings in excess of £170,000 over the first two years of the new arrangements.
Compliance to the Core List has continued, but changing usage habits and market conditions have prompted Howard Kennedy to engage ERA Legal to conduct a second review.
“The consolidation of Records Management services will bring us undoubted process benefits as well as great savings. The process of transferring records was not onerous at all, and effectively acted as a free audit of a large part of our files in store.
ERA Legal has also helped to bring about a commercial discipline to our purchasing of Office Supplies.
Having a dedicated specialist auditing our expenditure following the tender process has ensured the real value of supplier consolidation has been achieved and that it is a sustainable and workable solution.” Alan Hutchinson, Facilities Director Howard Kennedy.
Jason Adderley, Lead Consultant ERA Legal
ERA Legal has also helped to bring about a commercial discipline to our purchasing of Office Supplies. We’re confident that we can build on the solid foundations created by ERA to further develop and build our close relationship with our supplier.
Having a dedicated specialist auditing our expenditure following the tender process has ensured the real value of supplier consolidation has been achieved and that it is a sustainable and workable solution.”