Cost Optimisation for Furniture Retailer Achieves Savings in Energy and Business Insurance Expenses

Mitnahmemarkt GmbH, a German furniture retailer, operates 8 furniture stores in Saxony-Anhalt, Brandenburg and North Rhine-Westphalia, as well as a central warehouse and e-commerce. Thorsten Vortisch, Sales Director and representative of the family business, commissioned Birgit Geist from Expense Reduction Analysts to analyse and optimise two cost categories: energy and business insurance.

First, in order to sustainably reduce energy costs, Birgit selected expert Andreas Brünger. After an initial energy assessment of the company and a review of the existing suppliers, Andreas Brünger proposed a gradual approach which was implemented progressively.

During the first phase, the delivery costs for electricity and gas were optimised through a tender. The contracts newly negotiated included, on top of competitive prices, a range of services. In addition, special care has been taken to ensure a large decrease tolerance so that the prices agreed for energy would remain stable after the expected reductions in fuel consumption obtained through energy measures.

In the furniture market, the lighting is the primary reason for high energy consumption, which explains why the lighting technology was optimised during the second phase. Therefore spotlights were switched to LED technology with sensors so that the exhibition area would be lit only when needed. The power circuits were separated so that they could be turned on according to needs. Daylight sensors have also been set to automatically turn off the lamps when there is enough natural light. Specific care has been given to have a pleasant light colour and intensity.

During the third phase, an obsolete oil heating system was converted to gas-fired condensing boiler technology.  Although a new gas connection had to be installed, this investment will pay off in the short term. Thorsten Vortisch was very happy with the comprehensive optimisation of the energy costs. The competitiveness of Mitnahmemarkt GmbH has increased thanks to the continuous improvement process in the area of energy and energy purchase.

“We have systematically evaluated and continuously improved with Expense Reduction Analysts. The result is comprehensive and sustainable – I have gladly extended the collaboration beyond the contract period.” 

Thorsten Vortisch, Sales Director and representative of Mitnahmemarkt GmbH 

The second cost category, insurance, was tackled by expert Jörg Schlake. First, Expense Reduction Analysts recorded the existing policies and their general conditions. The specific challenges that were identified were the dissatisfaction of the company with the support from a local insurance provider, the unsatisfactory situation in terms of the timeline and the coverage concept of the insurance structure.

It became clear that a change of general conditions was necessary and that the risk situation should be fundamentally reviewed to develop bespoke content and optimised insurance concept requiring improvement. After Mitnahmemarkt GmbH opted for a new insurance provider and after a visit to all the company locations has provided objective insight in the operational risks, these were adjusted with the insurer from a commercial point to the individual needs of the company.

Thorsten Vortisch is very satisfied with the results of the project. In the future he will save around 15,000 Euros and provide improved business insurance protection tailored to the specific types of property and sites. He is especially pleased with the fact that through the collaboration with Expense Reduction Analysts, he has found a new insurance partner with whom he works in complete confidence and on an equal footing. He will continue to be accompanied by the experts from Expense Reduction Analysts.

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