Boosting Competitiveness thanks to Cost Savings

Cost Savings Today interviews Nuno Rangel, Vice President of Rangel Portugal, to assess the level of satisfaction from management with the processes and the results achieved by Expense Reduction Analysts. The project led by Expense Reduction Analysts has enabled the large Portuguese group to save an annual sum of 200,000 Euros.

How did you hear about Expense Reduction and the work carried out by the consultants?

We met through common business partners.

What was the main objective for Rangel in deciding to commission Expense Reduction Analysts?

Businesses usually focus and concentrate on their core business, and we, at Rangel, are no different. There are certain issues that end up being relegated in the background and are not placed on the management’s priority list. Meanwhile, Expense Reduction Analysts possesses know-how in very specific and very interesting areas. After several internal meetings and discussions, we came to the conclusion that using their services and testing them internally could be interesting for the company. We drew up a list of categories, and in partnership with Expense Reduction Analysts who came up with more suggestions, we decided which areas would be investigated. 

Was it the first time you used the services of a consultancy? How did you find the cooperation?

At Rangel, whether by tradition or by choice, we did not resort to external consulting. This was the first time that we resorted to this type of service and we were thrilled with the results of this collaboration. I can make a very positive evaluation of how the process took place and of the results achieved.

Do you believe that the services offered by Expense Reduction Analysts are important to businesses, especially in times of crisis?

I believe that the use of Expense Reduction Services are very advantageous, but I also believe that when a company is going through a crisis, this is not how it will overcome difficulties. Companies should use the services of a cost-reduction consultancy when they are in good shape. Competitiveness should be a constant concern. And having in the company an external professional with a lot of experience gives us an added value when it comes to negotiating with our suppliers and analyse the costs vs. the savings.

How would you rate the collaboration between the staff at the Rangel Group and the Expense Reduction Analysts consultants?

I was indeed concerned about the employees’ acceptance of Expense Reduction Analysts. It was important that they would feel that the consultants were not there to evaluate their work or their performance, but to see them as an asset that could help us in specific areas in which we do not have the internal know-how. This is what we tried to communicate to the staff and we ended up doing it very well. The consultants’ promise to only “steal” little time from our staff was actually fulfilled. Doing this project had no impact in our everyday life. The proposed programme is established and strictly respected, which is a very important factor.

What were the categories which Expense Reduction Analysts investigated?

The expense categories were fuel, cleaning, temporary work, insurance and packaging. With the work progress we chose to keep only three areas: cleaning, insurance and packaging.

What level of savings have the Expense Reduction Analysts consultants managed to achieve?

We saved a total of about £200,000 Euros annually, which represents about 4.3% of the total amount investigated. I must here highlight the results achieved in two categories, cleaning where we achieved savings of 14%, and packaging where we saved 22%. This category in particular is where I was able to experience the added value that Expense Reduction Analysts can bring to the process, by going on the field and analysing alternative materials. We are not just talking about price re-negotiations, but about finding more economical alternatives – other packaging solutions that are more economical.

In view of those results, will you have other categories investigated?

Definitely yes, in the future, we will contemplate a collaboration on other categories. 

Were you surprised with the results?

The results achieved were in line with what was expected. Perhaps, as I said earlier, I was surprised at the savings achieved in the packaging category. I did not expect they would be so high.

Would you recommend Expense Reduction Analysts’ services to other businesses?

Definitely. Of course. Businesses and their employees need to realise that they can be more competitive with their core services. Expense Reduction Analysts plays a key role here.

About Rangel

Founded in 1980, Rangel has rapidly positioned itself as one of the most active and innovative groups in their sector. Under Eduardo Rangel, the group has soon realised the necessity for the business to make strategic decisions with for specialised partners in the management of supplies and physical distribution of their products, and to keep their focus on the critical aspects of the business.  This was what marked the position of the group, making it a global logistic partner with the capacity to integrate a wide range of services, and to provide on one-stop solution on the market. Today, Rangel is a comprehensive business organisation which has experience and expertise in the areas of logistics and transport, storage, physical distribution, express delivery, customs formalities, fairs and exhibitions, as well as information systems, making it possible to provide integrated logistics management services.

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