Vapos, a Czech family business, specialises in the production of precision engineering components and has been a supplier for Skoda since 1996 and for TWR Automotive since 2000. The company has developed their own CNC machine solutions, for which they won a gold medal at the International Engineering Fair Trade in Brno, Czech Republic. Vapos also holds a patent for a towing device which does not contain any electronically-controlled mechanism. The company’s total turnover is about 250 million Euros.
The cooperation with Expense Reduction Analysts started typically through a good referral. “My father had a friend working at the Raiffeisenbank, who recommended ERA to us”, says Mr Radek Bernard, COO.
The company operates in a very competitive environment and the ability to manage costs efficiently is essential. “Today savings are very important, there is a strong pressure on prices from customers which we pass on to our suppliers”, confirms Mr Bernard.
At the beginning of the project, three cost categories were investigated: work equipment and personal protective equipment, where ERA surprisingly found savings of 25%; then the category of transport, where ERA’s negotiation skills enabled 6% savings and finally, waste, which was not completed as the potential savings were too low. The ERA consultants did not examine the tool category, as for commercial reasons there was no room for further savings.
Our sales and procurement department is run by two people. Cost savings in procurement only represent, in relation with the turnover, a fraction of the company’s cash flow because of the very competitive environment. However, any saving achieved is a great contribution.
“We are pleased that external consultants helped us with this project. Because we are a manufacturing company, we focus mainly on production” concludes Radek Bernard.