Schüco International Italia is not throwing money out of the window!

Founded in 1951, today the German group Schüco is one of the market leaders in manufacture of aluminium solutions for facades, doors, windows, verandas, etc. These are innovative solutions which meet the highest standards in terms of energy efficiency, safety, comfort and aesthetics. Schüco also produces complete systems in the areas of thermal solar power, photovoltaics and solar heat. With a presence in 78 countries, Schüco achieved a turnover of 2.38 billion euros in 2010. Its Italian subsidiary, Schüco International Italia, achieved a turnover of 250 million euros in the same year.
"Under pressure from increasing competition, Schüco International Italia has seen a reduction in business. Anxious to increase the profitability of our company, in 2011 we called on Andrea Gorza, a project manager at Expense Reduction Analyst, to analyse three budgets: telecommunications, small package freight and the fleet management. We did not possess the necessary skills internally to analyse these opaque and complex sectors. Only experts, we felt, would be able to obtain significant savings without reducing the quality of services. Furthermore, developing a cost reduction policy requires time to be allocated to collecting, compiling and analysing the data, then sending out the call for tenders and reading the responses. We did not have the spare capacity to accomplish these tasks," explains Alberto Cera, Director of Operations at Schüco International Italia.
 
An approach constrained by the relationships with the suppliers

The complexity of this project was linked to the firm desire of Schüco International Italia to retain its historical suppliers. "We wanted to continue our collaboration with our existing service providers, so long as they accepted a review of their procedures and proposed better prices. The quality of their services suited us. The danger of changing service providers is that it could have resulted in a reduction in the quality of service," confirmed Alberto Cera.
Having analysed the various budgets in detail and precisely evaluated the company's requirements, the consultants launched their call for tenders in each of the expense categories, in order that Schüco International Italia could gain a precise understanding of the market. The existing service providers were also invited to respond to the calls.
 
Solutions which require a strong negotiating capacity

The most beneficial scenarios offered significant savings while guaranteeing a very high level of quality. Potential savings were up to 20% for telecommunications, 14% for fleet management and up to 13% for small package freight; however, all involved a change of supplier. Therefore, to satisfy the requirements of Schüco International Italia, the consultants launched a second phase of negotiations with the historical suppliers. Ultimately, these suppliers agreed to revise their offers. The small package transporter even matched the competitor offers.
 
An average saving of 15% without changing suppliers

"We are very satisfied with the results obtained: 20% saving on telecommunications (landlines, mobiles and data), 13.4% on fleet management and 12.1% on small package freight. Thanks to the negotiating power of the consultants, the results obtained are almost identical to the initial savings identified, while retaining our historical suppliers. And all this without any reduction in quality!" concludes Alberto Cera.
 

"We are very satisfied with the results obtained: 20% saving on telecommunications (landlines, mobiles and data), 13.4% on fleet management and 12.1% on small package freight. Thanks to the negotiating power of the consultants, the results obtained are almost identical to the initial savings identified, while retaining our historical suppliers. And all this without any reduction in quality!"

 

CATEGORYSAVINGS
Telecommunications20%
Fleet management13%
Small packaging freight12%

 

 

 

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