With over 30 years of experience and an international presence in six continents, including Antarctica, Redecam Group is an Italian company leader in providing high technology products and services for strategic sectors such as energy and heavy industry.
The company policy which is extremely focused on the clients’ needs, has led Redecam to become a very successful company highly specialized in the design, manufacture and installation of solutions ranging from dust filtration equipments to complex fumes treatment facilities.
The company is strongly focused on sales and projects management worldwide; therefore, the indirect costs, although important, could not be managed by trained personnel within the company. Transports by sea deserve a separate treatment because they account for a very large share of the company’s annual budget and are manned by dedicated buyers within the purchasing department.
It was the need to optimise and rationalise the various items of costs that has driven the management of Redecam to seek the support of Expense Reduction Analysts that identified the greatest opportunities for savings in the areas related to the fixed and mobile telephony, travels, insurance, logistics and transports by sea.
"The goal was not only to get savings on indirect costs; We had got interest to evaluate, together with Expense Reduction Analysts, alternative suppliers able to effectively solve our problems or meet very particular requirements instead of acting as partners or mere vendors" says Marco Bonvini, CEO of the company.
Given the specific features of the company's business, characterised by a wide variety of clients and suppliers often very distant from each other, the project soon appeared very interesting. Some of the major clients are in South America or in Central Africa whereas the largest suppliers are in the Far East. From here, sea transports along numerous and very different routes, particularly articulated telephone and travel costs as well as substantial insurance costs to cover trips to uncomfortable places and guarantee the supply of plants parts of several million Euros, develop.
The consultants of Expense Reduction Analysts were able to identify different scenarios for each category thus responding to the complexity of the project with ad hoc solutions and vendors.
In the case of the insurance costs, Expense Reduction Analysts was able to manage and propose to Redecam a global player capable of responding to the local needs of the society. In particular the analysts offered a solid alternative to the very expensive use of bank guarantees required by the clients during the tender phase.
The solution, which includes the use of insurance bonds, has responded accurately to the problem therefore making the financial management of tenders less expensive.
Next, as for the telephony-related costs, the work and skills of the analysts have enabled Redecam to get 25% of savings through a significant reduction of tariffs and a personalised management of the commercial personnel and technician’s SIMs distributed worldwide, thus optimising the individual profiles in function of the specific requirements.
In the specific case of travel costs, the consultants of Expense Reduction Analysts have proposed to Redecam an alternative agency having specific experiences and expertise in the field of engineering and a solid coverage of all societies and complex routes even in those countries with high political tension. The results were not long in coming and, in fact, already in the first quarter of 2014, Redecam achieved savings of over 20%.
As mentioned, sea transports represent a very important indirect cost; plants are built and assembled primarily in the Far East and then transported by sea to all continents. Given the significant cost for Redecam, Expense Reduction Analysts has created an international team involving in the project consultants responsible for the SIG transports in Europe (Expense Reduction Analysts expert group). The high complexity of the routes used by Redecam and the fact that most of these lines were not repeated, strongly obstructed the definition of an immediate and effective solution.
However, in order to follow up with the work done, the Project Manager, Ugo Rietmann, Partner, and the consultants of Expense Reduction Analysts decided to present the issue at international level in order for Redecam, and the other clients with relevant sea transports, to be able to find soon in Expense Reduction Analysts proper answers to their optimisation needs.
Overall, the support of Expense Reduction Analysts has led to important optimization results, with double-digit savings, and especially has offered alternative solutions able to meet the particular and complex needs of the company. "In the end they did a good job; our staff is definitely pleased with the support we received concluded Bonvini.”
In addition, the project had also an educational aspect for the same company staff. A new resource, joining the company just a few months ago, has had the opportunity to quickly develop a set of valuable skills that will be of great utility to him through his experience within the company.