METCO Services find great annual savings
METCO Services is an Emerson Process Management business and is the largest specialist provider of impartial liquid and gas flow measurement and metering-related services worldwide.
Originally established in 1976 as ICE, METCO started out as a supplier of field technicians to the St Fergus gas plant in the North East of Scotland. Since then, the company has expanded significantly and joined the Emerson group in 1999.
As the business continued to grow in recent years, financial director Andy Lowden became increasingly concerned that there were inadequate systems in place to manage the company’s suppliers.
“I was aware that we needed a thorough look at what we were spending and that we didn’t have the resources to do this ourselves,” explained Andy.
METCO enlisted the help of Expense Reduction Analysts, a global leader in cost and purchase management in April 2008 and the process began with a look at its insurance suppliers, which was followed by workwear and PPE. Further projects included office supplies and short-term car hire, where METCO has reduced its costs by 32 per cent and 26 per cent respectively. Next, the company will closely examine its taxation advisory services and utilities spend.
“To get a better understanding of what was needed, our team worked very closely with METCO’s staff who were involved with procurement,” explained Graham Geddes, the associate at Expense Reduction Analysts who managed the review.
“It was also important for METCO to liaise with their parent, Emerson, to ensure that our recommended suppliers were in line with their policies. However, despite the parent company’s general purchasing power, the prices we were able to influence in our focussed projects were lower. Suppliers were then selected based on both the value they offered in terms of cost and the fit they had with the company’s values and aims.
Andy has also noticed a change in the company’s culture, which reflects a greater awareness of cost management. “We‘ve taken the inefficiency out of our processes and our suppliers feel we‘re a better customer because of it.”
SUMMARY OF SAVINGS
- Office Supplies: 32%
- Fleet: 26%
“There was an understandable tendency to focus on growing the business rather than the ongoing operational running costs, coupled with the fact that we didn’t have the detailed knowledge that ERA’s specialist consultants have.”