Client: Tampere Engineering Works Ltd
Industry sector: industrial subcontracting
Analysed expense groups: manufacturing supplies
The Expense Reduction Analysts team
Martti Kiijärvi and Jyri Haapalahti
About the project:
As a customer-oriented provider of systems and components to the technology industries, Tampere Engineering Works Ltd and its subsidiaries teamed up with specialists from Expense Reduction Analysts to strengthen their command of manufacturing supplies and develop an operating format that would be free of financial risks and require only minimal in-house labour. Collaboration began by reviewing the state of the company’s subsidiaries with respect to factory consumables. An analysis was made of the material and item headings concerned, the associated sourcing partners, and the operating procedures applied when using these commodities. The review covered about 500 materials and item headings, such as fasteners, protective equipment and hand tools used in all of the group’s subsidiaries.
Besides the sourcing price, this competitive tendering process took into account aspects such as the material suppliers specified by customers of Tampere Engineering Works Ltd, and it also noted the shelving service that minimises collection visits from the company’s establishments to the supplier. The outcome not only achieved substantial cost savings, but also brought improved transparency and operating procedures.
Under the model of Expense Reduction Analysts, their specialists do most of the work, freeing the client’s staff to focus on their own core functions. This approach appealed to Tampere Engineering Works Ltd from the very outset, and the company’s satisfaction was maintained throughout the process.
What the client says:
“We were impressed with the professionalism of Martti Kiijärvi and Jyri Haapalahti, and we were able to rely on these specialists to take the process forward effectively at every stage. This has brought substantial savings and a new type of transparency in our operating costs with minimal in-house labour, so we are very pleased indeed”
Overall savings: 17%