Highly comprehensive cost saving project brings quick results

Seeking to monitor value for money in various cost categories, the international heat exchanger manufacturer Alfa Laval Vantaa Oy teamed up with Expense Reduction Analysts to launch a project. This comprehensive collaboration has helped Alfa Laval realise savings and improved performance in several cost categories.

Alfa Laval Vantaa Oy, the leading international manufacturer of heat exchangers, began working with Expense Reduction Analysts in order to monitor the effectiveness and cost structure of certain non-strategic cost categories.

“Expense Reduction Analysts showed us a successful way to improve cost-effectiveness. We began this collaboration with an open mind, and the specialists at Expense Reduction Analysts immediately provided a professional approach to monitoring various cost categories,” says Mika Moilanen, Procurement Manager at Alfa Laval Vantaa Oy.

Multiple cost categories under control

Martti Kiijärvi, Anders Harju, Jukka Aromaa and Seppo Parikka of Expense Reduction Analysts began the collaboration by studying the operations of Alfa Laval Vantaa Oy. These specialists then focused on manufacturing and packaging supplies and operating site services.

“Collaboration with this client was highly comprehensive. We reviewed various cost categories with a view to incorporating them into larger, more cost-effective modules. This approach also more broadly responds to the client’s drive for greater operational efficiency,” explains Martti Kiijärvi, a specialist at Expense Reduction Analysts.

The analysis stage was followed by a round of competitive tendering that led Alfa Laval Vantaa Oy to change some of its suppliers and arrange new deals with others, seeking the most efficient and cost-effective format for each cost category.

A partner to safeguard the client’s interests

At the follow-up stage consultants from Expense Reduction Analysts monitor the realisation of savings in each cost category and the effectiveness of new operating formats. Over this two-year period these specialists track the operations of service providers, handling any necessary claims on the client’s behalf against new service providers selected on the basis of competitive tendering.

“Specialists from Expense Reduction Analysts regularly monitor and advise us on the effectiveness of new operating formats, the operations of any new partners, and the savings achieved. This enables us to keep track of project progress, benefits realised and quality assurance,” Moilanen explains.

The expertise of Expense Reduction Analysts also extends to in-house operational monitoring and quality assurance. The principles governing each project and potential cost savings are studied at the starting stage with a view to saving costs without compromising quality. The overriding aim is to ensure the viability of new operating formats and competitive tendering.

Consultants from Expense Reduction Analysts also launched a staff restaurant services project with Alfa Laval Vantaa Oy, but the initial review indicated that no significant savings could be made in this cost category.

“We never seek to save costs at the expense of quality, and we discontinue any ongoing project that appears to be inappropriate for the client. This is part of our own quality assurance and part of the responsible collaboration that we seek to provide for our clients,” Kiijärvi explains. 

CATEGORYSAVINGS
Operating site services26%
Manufacturing supplies20,1%
Packaging supplies5,6%

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