Gonzacar bets on adding an improved cost management to their strategic plan

Gonzacar S.L., Ford cars dealership for the province of La Coruña, was founded in Santiago de Compostela in 1992. Today the company has over 36,000m² of facilities spread over their seven dealerships in Santiago, Ribeira, Carballo, Ferrol, Betanzos  and Coruña (two) and a network of over 20 authorised workshops.
With a workforce of 140 people and a turnover of over 40 million Euros, the company is dedicated to the sales of vehicles and maintenance services and boasts over 2,000 registered vehicles and more than 40,000 repair services per year; they describe their mission as such: “We are a forward-thinking company dedicated to the sales of vehicles and services, designed to provide global solutions to our consumers with the best quality – price, added value, benefit and mutual respect for clients and company’s employees.”
 
Categories investigated
Solutions that request a change of supplier usually generate larger savings but are typically far harder to implement, involving resistance of current suppliers, the natural uncertainty of the “unknown”, some discomfort, etc.
In this case, savings were generated by a combination of alternative suppliers, a resizing of products and services and to a lesser extent by a renegotiation of prices and a change of processes with the usual suppliers.
 
The project on telecommunications consisted in the analysis and negotiations of new offers of services that the client had already requested from their usual service providers, and where the Expense Reduction Analysts experts helped with decision-making.
 
In the insurance category, savings were primarily obtained by requesting suppliers to provide a service tailored to the real needs of Gonzacar. Before the intervention of Expense Reduction Analysts, the contract strategy was to buy standard insurance products slightly adapted.
“We have to highlight the commitment of every single employee in the projects, simultaneously helping and challenging the Expense Reduction Analysts experts to give the best in their work. Any improvement, innovation, idea or alternative solution was heard with intense interest” explains Juan Subias, the Project Manager from Expense Reduction Analysts.
 
In parallel, the behaviour of the Gonzacar management was at all times decisive: obstacles to implementation? Once implemented, will the solution be better than currently? Let’s go forward! This attitude has made it possible to implement the relevant changes requested by the options offered by Expense Reduction Analysts thus insuring that the savings expected in the short term would be generated and future negotiations would be facilitated.
 
“With the savings obtained through the projects managed by Expense Reduction Analysts, and the peace of mind from knowing that we now are in line with the market, we do no longer have to take difficult decisions”.

Marcial Castro Seijas, Gonzacar Manager
 
“With the Expense Reduction Analysts consultants, you involve qualified experts in the management of a specific project for a limited time and on a self-funded basis”.

Eva Iglesias Feijo, Director of Finance

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