Cost Reduction Supports Company Growth

Building Energy is a an independent producer of energy from renewable sources with a broad portfolio of plants in operation, construction and development and with a pipeline of over 800 MW in Europe, Africa, Central America and the United States.

The company, founded in 2010 by the current company management, has over 70 employees working in the Milan headquarters, the technical-commercial offices in Savona and Faenza and in foreign offices in South Africa, the United States, Serbia, Japan and the United Arab Emirates.

In addition to the plants directly or indirectly developed and built in Italy - with a capacity of over 150 MW from photovoltaic technology - the group has experience a significant expansion worldwide in markets where renewable energy offers the greatest potential for development.

Fabrizio Zago, CEO, explains: "Today the pipeline of Building Energy includes projects under development and construction for about 1,000 MW at international level. In South Africa for example, Building Energy has won the contract for the largest photovoltaic project of the African continent - for 81MW, in Kathu – in the first round of REIPP, the incentive program of the South African government for the production of energy from renewable sources. The plant was operational in August 2014".

This brief description shows the complexity of the indirect cost structure of the company.

Ugo Rietmann, Client Manager and Partner at Expense Reduction Analysts, focused on two cost categories that were considered extremely important when taking into account the size of the company.

Gianni Ronchi, Director of Administration, explains how the project was set: "The telephone and travel expenses had experienced sharp increases in recent months due to the growth of our business abroad. We did not have the internal resources to negotiate with suppliers sales conditions that would meet our requirements, which were changing constantly. Moreover for travels we were supporting a small local agency providing a great services but not able to follow our growth. "

The experts at Expense Reduction Analysts understood the specific client requirements, and therefore were able to significantly optimize the cost categories.

Results obtained for the telephone cost category were, on average, over 45%.

As for the telephony, the results obtained went on average over 45%; actually, the work focused less on rates and far more rigorously on the spending profile of each user; managers and sales engineers at Building Energy who travel in different continents have obviously specific needs for voice and data connections. Each user has been given a detailed solution with the most suitable choice of price plans. In addition, the Expense Reduction Analysts partners are continuously following the situation, with the aim to monitor traffic and where possible, seize new opportunities.

As mentioned previously, the travel cost category was very important with regards to the number of travelers, intercontinental covers and costs incurred. After analysing the expenses and understanding the future company’s requirements, the Expense Reduction Analyst expert has conducted a tender with the best Italian travel agencies specialised in cross-continental travel.

By acting on elements such as prices and agreement with airline companies for the most frequent journeys, results were achieved which represent quarter on quarter, around 25% savings on average.

By acting on factors such as rates and agreements with airlines companies for the most recurring routes  the experts obtained quarter after quarter, savings of around 25% on average. Obviously, under conditions of strong company and budget growth, the leverage effect has enabled significant cost reductions in absolute terms.

Even with regards to hotel bookings, interesting options were found enabling savings and facilitating hotel booking in different countries.

Dr. Ronchi summarizes the main points of the collaboration with Expense Reduction Analysts: "Getting additional resources to finance growth is certainly important; but perhaps even more important is the support provided by the Expense Reduction Analysts consultants in the management of these cost categories, not only in the stages of implementation of the optimization solutions, but above all in the follow-up of our business activities.”

"Getting additional resources to finance growth is certainly important; but perhaps even more important is the support provided by the Expense Reduction Analysts consultants in the management of these cost categories, not only in the stages of implementation of the optimization solutions, but above all in the follow-up of our business activities.”

Dr Gianni Ronchi, Administrative Director, Building Energy

 

CATEGORYSAVINGS
Telephony45%
Travel25%

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