Founded in 1967, Rexel Group has been working in the distribution of electrical materials and services for over 40 years. With 2,300 branches in 37 countries and 31.000 employees, Rexel has 8% of the global market share establishing itself as a worldwide leader in the three key market segments: industrial, residential, and commercial. The Group is the preferred partner of all professionals in the electrical chain from electricians to key industrial accounts and equipment manufacturers. Rexel offers all customers a wide range of electrical supplies: electrical materials and products for lighting, data transmission, communication and energy.
The Italian branch Rexel Italia Spa, established for the first time in Italy in 1989, is now present on the Italian territory with 23 stores, 4 logistics centers and over 400 collaborators. The professionalism of the staff, the quality of the distribution chain, the reliability of logistics centers and innovation in the use of new technologies have always been amongst the hallmarks of Rexel Italy.
In spite of the centralisation and management of some cost categories at a European level, Dr. Massimo Ferri, CEO of Rexel Italy, has been able to conduct a process of continuous optimisation of overhead costs with the company’s internal resources. However, the current economic situation of the Italian market led Rexel to consider further saving solutions, especially in the cost categories that were managed locally.
This prompted Dr. Ferri, along with Mr. Maurizio Bandini, CFO and main contact at all stages of the project, to commission Expense Reduction Analysts. The limited availability of internal resources and the confidence in the skills and expertise of the Expense Reduction Analysts consultants, as well as the result-based remuneration model, convinced Rexel that Expense Reduction Analysts was the right partner to undertake the cost reduction project.
After an in-depth analysis of the costs of all branches, the Expense Reduction Analysts consultants pointed out that there were savings opportunities in the Energy and Cleaning cost categories.
With regards to the Energy costs category, Rexel had to manage a complex electrical energy supply for their 27 sites. In order to find efficient solutions and produce an economic benefit without compromising the quality of service, the analysts performed a thorough scouting analysis within the supplier group working in the free market and energetic consortiums. On the basis of all offers received, the analysts identified the option of implementing a new offer promoted by the current supplier thus achieving annual savings of 26% for Rexel.
Furthermore, the analysis of the cleaning costs highlighted a complex initial situation where the company had to deal with a very wide range of suppliers to arrange cleaning services for its 24 sites. At the beginning the company was using 16 contractors with some of them providing services in more than one site. Rexel seemed quite satisfied with the levels of service offered, but, after a detailed analysis of the supply contracts carried out by the Expense Reduction Analysts consultants, the company became aware of a real potential for improvements and savings. The accurate analysis by Expense Reduction Analysts and the optimisation of specifications enabled the company to benefit from a leaner and more efficient supply plan based on a dramatic reduction in the number of suppliers. The annual savings achieved were 13%.
“ERA consultants: Efficient and competent”, Dott. Massimo Ferri – CEO of Rexel Italia