Soleko Spa: Cost Management under the Microscope

Present in the optical and ophthalmological sectors for over 36 years, Soleko Spa is now considered a landmark in the Italian contact lens market.

The company was founded in 1975 in Pontecorvo in Lazio thanks to the extensive experience of the industry demonstrated by founders Kawamukai Motokage and Joseph Carnacina who, since 1966, have produced rigid contact lenses at a laboratory in the heart of Milan.

Over the years Soleko has experienced constant development both in terms of working surface, currently more than 4.000 square meters, and in terms of a range of products portfolio that has been expanded over time with the production of contact lenses solutions and intraocular lenses.

As active player in the contact lenses introduction process, the company was able to develop the most innovative production technologies and produce all raw materials for which it holds patents on products and processes.

Soleko is in fact is the only Italian company that can boast products made with raw materials and technologies developed in Italy with the support of its research center that works directly with the most prestigious universities in Italy and abroad.

The current president Dr. Guido Carnacina, well aware of the important increase in costs within a group with such rapid expansion, decided to contact Expensive Reduction Analysts to assess the potential savings for the company; "we have chosen Expense Reduction Analysts consultants for their professionalism, the mutual investment made on the costs analysis and the likelihood of success of their intervention", says Dr. Carnacina.

After in-depth analysis, not only of the traditional overhead costs categories but also of some very strategic business costs, Alfredo Longo, Partner and Client Manager at Expense Reduction Analysts, and his team of experts were able to present Soleko with a clear picture of the current situation.

Energy, Transports and Packaging appeared to be the categories with the most significant opportunities for savings.

An essential category for a manufacturing company like Soleko, the Energy sector was managed through a call for tenders issued with dozens of providers; analysts presented the company with a full range of solutions thus enabling Soleko to better evaluate the different proposals for fixed and variable rates, and the risks and savings for each. The Expense Reduction Analysts consultants also performed a review of all contractual parameters in order to identify the best combination for the client’s specific requirements.

The analysis has led to prefer the current supplier which allowed continuity in the relationship as well as excellent overall savings. Savings are currently reached 33% which may still increase in the course of the project.

As the category of Express Couriers is also essential to Soleko for domestic and international shipments, a tender was initiated to act preventively on the reconfiguration of the delivery modes. The consultants’ work enabled Soleko to enter into an agreement with a new high quality supplier whilst achieving savings of over 30%.

"After a few months of collaboration we are beginning to see positive results. Delegating externally the suppliers’ selection criteria removes the constraints from established personal relationships which results in greater efficiency and cost reduction” says Dr Carnacina.

And eventually with regards to the packaging category, it falls within in the costs linked to raw materials and therefore is considered strategic for the company. The Expense Reduction Analysts consultants’ activities have at the moment focused on the management of labels, for which savings of over 20% were achieved. This result was made possible thanks to a review of the modalities and quantities ordered and the involvement of new alternative suppliers.

In all three cost categories, the results were excellent; "Each category was managed by an expert, and from time to time in associated with a procurement manager with extensive experience in the field” concludes Dr Carnacina with satisfaction.

However the results appear even more interesting when considering that, for the Energy cost category, they have been achieved whilst maintaining all incumbent suppliers, and for the Packaging category, only two new suppliers were added. Everything was achieved without affecting the level of service.

CATEGORYSAVINGS
Energy33%
Packaging20%

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