Wireless Maingate Nordic AB is a company within the M2M and the M2H industry with a turnover of above 100 million SEK and about 50 employees. The company is owned by the investment fund Verdane Capital Advisors and has ambitions to expand rapidly in the next couple of years. Presently, a lot of factors are pointing into this direction. Pär Carleke, CFO of Wireless Maingate Nordic, was assigned to reduce the overhead spending but he neither had the time nor the experts to achieve significant results. Therefore he hired Expense Reduction Analysts-Partner Jan Hägersand to reduce the indirect spending.
The employees at Maingate are extensively using mobile telephony and data traffic. In order to reduce the telecom costs, Expense Reduction Analysts analyzed the call patterns and set up a tender. On average, Maingate achieved 18 percent savings with the incumbent supplier.
Maingate has a total of over 1000 square meters of office space and spent 6-digit amount SEK on office cleaning annually. Maingate was, so far, very satisfied with the service the incumbent supplier delivered. Therefore Expense Reduction Analysts started negotiations with the incumbent supplier. Since the supplier was not willing to do any negotiations, Expense Reduction Analysts launched a tender. Result of the tender was a 41 percent cost reduction in cleaning costs with a new supplier.
Since the Maingate employees travel a lot, both internationally and inside Sweden, Maingate spent over 2 million SEK annually. All travel arrangements were made by one agency. Expense Reduction Analyst analyzed the travel pattern and processes, and set up a tender, partly to lower the agency fees and partly to see which agency could provide Maingate with the best possible solution for the future. The travel agency fees were reduced 60 %, depending on future travel pattern. Flight and hotel expenses are also being reduced about 16%, as Expense Reduction Analysts are working together with Maingate to secure better internal processes.
Pär Carleke, CFO of Wireless Maingate Nordic, was very pleased with the results: ”Qualitative factors are highly important for us. Therefore, we made our decisions not only driven by the offered price. Expense Reduction Analysts has helped us very much dealing with our suppliers. They have always worked very professional and ethical with all involved suppliers.”
"Expense Reduction Analysts has helped us very much dealing with our suppliers. They have always worked very professionally and ethically with all involved suppliers."
Pär Carleke, Wireless Maingate Nordic AB