Paymex | Expense Reduction Analysts

Paymex

Multiple service improvements and generous savings for Paymex

Paymex are a company that is conscious of their indirect costs and had previously managed these internally despite not having an in-house purchasing department. However, when Robin Russel-Fisher, Group Financial Director, Paymex Limited, met with Clive Cowan of Expense Reduction Analysts, it became evident ERA would become their trusted procurement advisers of choice.

Clive’s team of consultants began by exploring postages costs but found that Paymex were already receiving the best possible price. Although no saving was uncovered, this was a positive result for both the client and ERA providing transparency and reassurance.

“I was extremely impressed with ERA’s openness and honesty; in one project the consultants spent a significant amount of time and energy reviewing, they established that we already had the optimum pricing in place. As there was no available saving in this category, ERA did not claim anything in return for their efforts in this area which we found reassuring.” Robin Russel-Fisher, Group Financial Director, Paymex Limited.

Following the first project, Robin asked ERA to explore other cost areas where Paymex were without the in-house expertise and resource to review. This included photocopiers, communications and utilities, of which Clive was able to appoint colleagues with the essential industry knowledge and experience.

Clive enlisted Brian Pinner who was Managing Director of a Photocopier business for over ten years before joining ERA in 1997. Brian used his expert knowledge of this industry to recommend replacing Paymex’s fleet of aging Photocopiers and Desktop printers with a lower number of up to date multi-functioning machines with increased printing capacities and additional facilities. The new supplier provides a high level of after-sales service and a category saving of 42%.

In the electricity category, established ERA consultant, Malcolm Tait who has over 20 years experience in Senior Purchasing and Project Management and an extensive knowledge of supplier management, presented a selection of providers and Paymex selected one offering a 19% saving. The new supplier was implemented smoothly with Malcolm managing the change over to ensure there was no disruption to Paymex’s electricity supply.

Clive called on the expertise of his colleague Pritesh Patel who has completed over 100 telecoms projects to review Paymex’s communications contracts.

Pritesh’s deep understanding of the communications industry enabled him to modify the contract with Paymex’s existing supplier so multiple mobiles were on the same agreement with a greater visibility of extra services making it much simpler and easier to process. Pritesh’s expertise of this category has resulted in a 38% saving and more flexible terms for the client.

Paymex had been using a bulk text messaging facility but their contract was vague and long term. With the assistance of Pritesh’s experience, the contract was successfully challenged and an alternative supplier that could provide a better service was implemented.

Pritesh found that the client’s fixed line communications contract was not in line with the current market conditions, and conducted a review with comparable contracts of other providers and used this to negotiate with Paymex’s existing supplier. A contract proposal that was more in line with the market place was submitted achieving a category saving of 47%.

Summarising the relationship with ERA, Robin Russel-Fisher, Group Financial Director, Paymex Limited, commented: “What distinguishes ERA is that they have provided an end-to-end service for Paymex – running tender processes then actively managing our suppliers and ongoing purchasing habits, ensuring that we are always getting the best value available. This has worked exceptionally well for us, the benefits that ERA has brought to our company have gone far beyond just the identified cost savings.”

Paymex Profile

The Paymex Group is a leading financial solutions company based in the heart of Greater Manchester. The group includes a collection of  companies which together provide a host of effective services that have been specifically designed to help both individuals and businesses out of tough financial situations.

SUMMARY OF SAVINGS
  • Postage (Free health check): 0%
  • Photocopiers: 42%
  • Utilities – Electricity: 19%
  • Comms – Fixed line: 47%
  • Comms – Mobiles: 38%
  • Comms – SMS: 41%
  • Stationery: 19%

“What distinguishes ERA is that they have provided an end-to-end service for Paymex – running tender processes then actively managing our suppliers and ongoing purchasing habits, ensuring that we are always getting the best value available.”

Robin Russel-FisherGroup Financial Director
Project consultants