Founded in 1836, Confiserie Sprüngli is today the most renowned confiserie in Europe. With 1,000 employees, the company generates an annual turnover of over 100 million Swiss Francs.
The Sprüngli products are now sold in 19 stores in Switzerland, with representations outside Switzerland; they are also increasingly sold online.
As Sprüngli had neither the time nor the necessary resources to deal with expenses outside the strategic cost areas, Expense Reduction Analysts was commissioned to undertake the investigation of overhead costs.
At the time, Sprüngli spent almost CHF 480,000 for the maintenance and glass cleaning in all their Swiss stores. There was in addition CHF 26,000 for the maintenance cleaning of the company headquarters and almost CH 500,000 for that of the production facilities. For their cleaning needs, the company worked with eight service providers for the stores, and with another for the upkeep and cleaning of the headquarters.
In order to find the best solution for Sprüngli, Expense Reduction Analysts prepared an invitation to tender and submitted it to five service providers. Some parts of the tender included among others, detailed service specifications and requirements. After analysing the outcomes of the tender, Expense Reduction Analysts recommended to allocate the cleaning services to two service providers: one for the cleaning of the headquarters and the production facilities, and another to be in charge of the stores.
The results of these changes enabled savings of 35% for the cleaning of stores, 45% for the cleaning of the headquarters, and 30% for that of the production sites. Overall, Sprüngli reduces their expenses by CHF 390,000.
The President of the Board of Directors at Sprüngli declared that he was very satisfied with the results. “We wanted to take a closer look at all the overhead costs and are very satisfied with the choice of Expense Reduction Analysts”.
Industry sector: Retail
Cost categories: Cleaning
Yearly budget: CHF 1 million
Yearly savings: 35%