Cost Savings Achieved for Kitchen Manufacturer

THE CLIENT

Pronorm Einbauküchen GmbH (Germany)

Industry sector: Manufacturing

Cost categories investigated: Courier and small packages

 

THE PROJECT

Pronorm Einbauküchen GmbH, a traditional German company looks back at a long his­tory, beginning in 1945 with the manufac­ture of kitchen furniture at the company’s location in Vlotho. Today, the Dutch DMG Group owns the company, one of the most important manufacturers of individually fitted kitchen in the high range segment.

The company decided to commission Rainer Ebke from Expense Reduction Analysts to review the cost structure for courier, ex­press and parcel services, who was joined by Michael Röper, category expert.

Up until then, Pronorm Einbauküchen GmbH had been working with two service provid­ers for an expenditure budget of almost 100,000 Euros. These expenses were split between standard and express delivery as well as courier trips. Standard dispatches accounted for over two thirds of the spend.

Following an analysis of the client’s needs, Expense Reduction Analysts prepared a de­tailed call for tender and in addition to the two incumbent suppliers, invited a further six to participate.

As a result to the bid, Expense Reduction Analysts found that Pronorm Einbauküchen was positioned optimally in the area of standard delivery. However, potential sav­ings of 25 to 39% were identified in the category of express delivery. The best and most interesting offer came from the incumbent supplier – but at a cost much lower than the current one. The savings achieved in courier, express and parcel ser­vices amounted to almost 11% or 10,500 Euros per year. Thorsten Gösling, the Head of Operations, declared that he was very satisfied with the result achieved.

 

WHAT THE CLIENT SAYS

“Working with Expense Reduction Analysts enabled us to save time and resources. We are currently investigating further cost categories.“

Thorsten Gösling, Head of Operations, Pronorm Einbauküchen GmbH

 

THE RESULTS

10,500 Euros annually (11%)

DOWNLOAD THE CASE STUDY HERE (PDF)

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