Cost optimization of overhead expenses, the new successful idea for Movi Spa

The company, which has developed advanced technological solutions for the well-being and health sector, is solidly present in the market thus consolidating significantly its distribution network. Thanks to its continuous development of new ideas and ways of working, in Italy Movi is one of the top companies in the research of innovative technologies in the field of diagnostic devices and electromedical equipment.

"Nowadays Movi is a strong player in the distribution of medical devices; it has more than 90 employees, 7.000 square meters in Milan dedicated to offices, laboratories, warehouses and auxiliary services; it represents a dynamic and growing entity" Eng. Enrico Emilio Bassani says.

Initially, Movi and Expense Reduction Analysts got in contact thanks to the CFO of the company; in spite of the ownership and management’s constant attention paid on cost management, it was deemed necessary to carry out an audit with an external partner able to bring his expertise on specific cost categories. The analysis initially focused on costs related to telephony, fleet management and business travel while, in parallel, the Expense Reduction Analysts consultants started working also on transport for import and sales, a budget over one million Euro with different critical levels.

Mr. Prandoni, Purchasing Manager, specifies: " the transport for sales represent a critical element for Movi: we transport equipment and medical devices that are expensive and fragile for delivery to hospital wards; or medical devices such as hospital beds and motorised chairs of such weight and dimension that it makes the delivery to hospitals, health shops and pharmacies, objectively complex.”

Thanks to their extensive experience, Ugo Rietmann, partner and Client Manager at Expense Reduction Analysts and his expert colleagues were able to present an accurate overview of all different cost categories, allowing Movi to gain a clear picture of the situation. The expenses taken into account amounted to sum of around 850,000 Euros and each Expense Reduction Analysts expert focused on analysis a specific cost category to best meet the client’s requirements. The analysis of costs and needs led to different solutions for different types of services.

With regards to the transport category, the consultants decided, based on the analysis done, to focus in particular on the transport for sales with express couriers; from the beginning, the objective was to keep the same provider, whilst optimizing the expenses through a restructuring of rates.

Mr. Prandoni, directly involved in transport management, says: “Actually, businesses that are not as structured as Movi, do not have all the analytic and benchmarking tools to enable them to find complex individual solutions of optimization, beyond the mere renegotiation of freight rates. The result, with savings of over 20%, has more than satisfied us.

In the case of travel and fleet expenses, the Expense Reduction Analysts consultants decided to go through tenders in order to present the client with practical solutions to meet the specific requirements. The top management at Movi actually travels abroad on a regular basis and this represents a large part of the expenses; in the case of fleet management however, the need to rationalise the supplier base became immediately apparent. The solutions proposed by Expense Reduction Analysts were soon visible:  A business travel agency, specialized in long journeys, and a top player in fleet management have enabled Movi to achieve savings of over 20% in both categories.

“We are about half-way through the 24 months of the monitoring of costs done by Expense Reduction Analysts. The results have arrived on time and in line with expectations. The “success fee” model has proved to be a winning solution: it was a guarantee for my company not to invest resources in projects with no certain returns and above all, the assurance that the Expense Reduction Analysts consultants would be committed to producing significant results” concludes Enrico Emilio Bassani with satisfaction.

CATEGORYSAVINGS
Transport+20%
Travel+20%

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