Industry sector: Electrical engineering and industrial automation
Cost categories: Cleaning, waste, landscape services and office supplies
The Expense Reduction Analysts team
Luis Ybarra (Client Manager), María José Balaguer (Waste), Miquel Viure (Cleaning and Gardening) and Xavier Martínez (Office Supplies)
About the project:
ABB products, a global leader in electrical engineering and industrial automation, can be found from stations orbiting in space to generating energy from the bottom of the seas. They are also present in agriculture, irrigation systems for crops, then later in bottling plants or packaging. The brand is famous for its robots, with all applications possible for industry but also for homes, where they offer from the most futuristic home automation solutions to a simple switch. This Swiss-Swedish company, based in Zurich, with 36 billion Euros turnover and over 135,000 direct employees, is present in over 100 countries.
The company subsidiary for Spain and Portugal is a reference within the group for its centres of excellence and pioneer projects. Iñaki Barrena, Supply Chain Manager at ABB, recommended Expense Reduction Analysts and introduced consultant Luis Ybarra who became Client Manager for the project. “From the beginning, we liked the way Expense Reduction Analysts spoke to us frankly” he recalls. “The invoicing was also greatly facilitated: if they found savings, then they charged, if they found none, there was no invoicing” he adds.
ABB requested several conditions for the project including corporate social responsibility requirements. The main ones were the ABB´s Supplier Qualifications System for all the proposed providers and the fulfilment of the Spanish Law on Social Integration of Disabled People (LISMI).
Once agreed upon, the project started with 4 main cost categories: cleaning, office supplies, landscape services and waste. The latter was divided into hazardous, non-hazardous and metallic (scrap) waste. Ybarra appointed 4 experts who worked side by side with 4 designated people from ABB Spain and Portugal. In turn, these teams coordinated the sub-projects with operational and geographical managers.
What the client says:
“The key to success resides in the professionalism of Expense Reduction Analysts. They are experts, people who know well each of the materials that we have set to work. Therefore it was, actually quite simple. When you rely on an expert for each account, it is fairly easy to reach to objectives that you have set”.
Rafael Suñé, CPO of ABB Spain and Portugal
What Expense Reduction Analysts says:
“Due to the complexity of their structure, the ABB project required very important efforts to coordinate with all the geographical and functional responsible people within the different cost categories. The initial planning and the meetings and conversations we had with all of them were key to define and unify the performance criteria. The results exceeded the expectations of either ABB or ERA”.
Luis Ybarra, Client Manager of ERA Spain.
- Cleaning (plant and offices) 32%
- Metallic waste (scrap)* 22%
- Other waste 24%
- Landscape services 28%
- Office supplies 38%
*Metallic waste: Percentage reflects increase in revenue.
Annual savings: 750,000 Euros.
ABB Spain – a company striving on excellence
ABB Spain – and most notably the Procurement Department – has been doing a great job in recent years. “We are growing within the organisation, and not just in numbers. The group has a good opinion of us and because of this, we were able to hold centres of excellence such as the automation of printing presses which is number one in the world” says Suñé, CPO for ABB Spain and Portugal. “Without this mindset, projects such as the collaboration with Expense Reduction Analysts or others that we are currently implementing could not be achieved” he concludes.