Supplier review delivering £50k+ ProfitBuilder Case Study
THE SITUATION
The CEO asked Emerson Nash to investigate their supplier base, at what they were buying and were these services
- needed i.e. was there a better way of achieving the end result
- providing value for money for the business – what were they getting compared to what they were spending
THE PURPOSE OF THE PROJECT
Reduce business costs overall and improve the benefits received.
THE PROJECT
Emerson Nash worked closely with the client team to:
- Understand what each service supplier did and how that benefited the business
- Understand what alternatives there were to the current supplier
We quickly identified a supplier that was not adding any value. We were able to buy the services being offered directly from the sub-contractors the supplier was using, cutting the middle-man supplier.
The change in supply was achieved quickly – within 8 weeks – and with minimal work and negotiation by the client team.
THE OUTCOME
The costs were reduced by £50,000 per year, every year thereafter with no disruption to service. This meant the money could be put to better use to grow the business.
RETURN ON INVESTMENT (ROI)
|
|
Value created |
Return multiple |
|
Return over 1 year |
£49,000 |
Over 5 times |
|
Return over 3 years |
£147,000+ |
Over 15 times |
We measure the return on investment as the ratio of what value the client receives compared to their investment with us.
About the Business
-
An SME business
- Makes products in their premises and sells them across London
- Sales of over £4m, with multiple locations and a team of 40+
- Outsources a variety of services to third parties
