Industry sector: Manufacturing
Cost categories investigated: Industry consumables
The Expense Reduction Analysts Team
About the project
In order to enhance the operational efficiency of its three factories, Finnish door and window manufacturer Inwido commissioned Expense Reduction Analysts to optimise and standardise suppliers’ contracts for production consumables. The installation supplies used by subcontractors were also included within the scope of the project. Previously the three factories had used different consumables, and competitive tendering among suppliers was difficult due to the large number of different items used. Therefore the objective was to standardise production consumables and improve the operational efficiency.
The installation of Inwido’s products is handled by independent installation companies but, for the sake of customer satisfaction and possible further changes, Inwido wanted to standardise the working practices of its product installers and the installation supplies used by them. Expense Reduction Analysts’ experts also handled the competitive tendering of installation supplies providers simultaneously with the competitive tendering of production consumables.
In production consumables, monitoring is highly important. During the two-year monitoring phase, Expense Reduction Analysts’ experts prepare at three-monthly intervals a detailed analysis monitoring the realisation of savings both on an item and on a product group level. In addition, an analysis is made as to whether the selected products are the best or whether product changes should be considered.
What the client says:
“Through Expense Reduction Analysts’ research and competitive tendering, we not only found savings, but also secured for our factories high-quality products that safeguard occupational safety and standardise production operating models.”
Mauri Oikari, Procurement Director, Inwido
What Expense Reduction Analysts says:
“By standardising the product range and continually finding the best and most cost-effective products, permanent savings will be achieved. In Inwido’s case, the monitoring of the supplies of the three factories will play a key role in realising the savings.”
Jyri Haapalahti, Client Manager