Global System International: Costs Optimisation as a successful tool for growth

Founded in October 2002, the Group Global System International is now the Italian leader in the design and production of components for agriculture and automotive industry machineries, two of the most competitive, complex and sophisticated sectors worldwide.

The group, which has now over  350 employees, produces, markets and supports the industrialisation of assembled plastic products for agricultural, earth moving, automotive, electrical sectors and includes among its clients very prestigious companies such as CLAAS, Argo Tractors, Volkswagen and Iveco.

GSI is currently present with production plants in several European countries, Brazil, China and North America and is experiencing a period of strong growth and expansion thanks to a strong focus on excellence in production and on the development of global markets. "GSI is experiencing a strong growth in international markets; in 2013, we have started a programme of growth by joining the project Elite of the Italian Stock Exchange" said the Eng. Stefano Maria Profeti, Chairman & CEO of the Global System Group International.

In such a growth environment, where cost optimisation and control play an essential role, the GSI management requested the support of Expense Reduction Analysts to rationalise the various cost items such as Energy, Telecommunications and Transport.

"The optimisation of all operating mechanisms is an essential part of the growth process. As for indirect costs, we thought that the support of a consulting firm like Expense Reduction Analysts could bring significant benefits to our company" said Mr. Profeti.

The project managed by Ugo Rietmann, Partner at Expense Reduction Analysts, and Stefano Vignali, HR & Purchasing Director of the Group as well as Plant Manager of GSI SpA, immediately appeared very promising, given the specific nature of the business. The clients of GSI are located worldwide and, above all, require "just in time" deliveries with suppliers. Logistics and transport were certainly a major cost and a critical variable. Also in the telecommunications category, there were many variables to consider, as well as the structure of the traffic and the desire for GSI to maintain as far as possible the current supplier.

The Expense Reduction Analysts consultants were able to identify several solutions for each category, taking into account the specific needs and requirements of GSI.

For the telecommunications costs, Expense Reduction Analysts was able to propose solutions to optimise and restructure the service, and allowing the company not only to maintain the same supplier but also to obtain savings of over 15% on both the fixed and mobile telephony.

Regarding the energy costs, the Expense Reduction Analysts consultants organised a tender with several suppliers and offered GSI a new solution enabling the company to achieve significant savings.

The benefits of the operation, which were already confirmed by the first half of 2014, amounted to savings of over 7%.

In the specific case of transports, the management of GSI had always managed costs with special care and with a dedicated team, due to the critical nature of the delivery times. Moreover, for Expense Reduction Analysts, it was about optimising a “price list", in particular for transports on sale, based on route and truck capacity. Instead of working on the price list, which had already been optimised, Expense Reduction Analysts developed and proposed specific solutions and processes, including the use of intermodal transports on some routes to Northern Europe and a more favorable contract with the main supplier. "Regarding the framework agreement for transport, the consultant has achieved results we had not thought possible; it is clear that having an expert buyer at your disposal allows you to get something more, which has an important value both for the service and from an economic point of view, "says Mr. Vignali.

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