Cost Management Sydney, Cost Analysis Sydney Australia, Specialists in Cost Management

Shopping Precinct saves over $200,000 per annum!

EXPENSE CATEGORY Contract Cleaning

INDUSTRY SEGMENT Retail and Public Space

CLIENT OVERVIEW A major multi-site multi-retail operation located in the Sydney CBD and environs.

CLIENT'S GOALS To reduce the escalating cost of contract cleaning while maintaining exceptionally high standards due to the prestigious nature of the properties.

PROJECT SUMMARY Maintaining or improving cleaning performance was critical to this successful cost management project. The incumbent contractors had been operating for some time with costs increasing, internal staff changing and therefore investigations of alternatives being delayed for some years.
An important requisite was to maintain the working conditions of the cleaners who, as highly visible & uniformed daytime workers, form an important part of the image of the organisation.

OUTCOME RfP was able to reduce the costs of cleaning by well over $200,000 per year, while maintaining the client's requirements for staffing levels and cleaning standards. This complex tender, evaluation and implementation, achieved in a rapid time frame while allowing the overstretched operations staff to focus on their core responsibilities.

Finding Extra Funds for a Club & it's Community

EXPENSE CATEGORY Various including: Security, Print, Consumables, Power

INDUSTRY SEGMENT Registered Club

CLIENT OVERVIEW This ex Servicemen's club in the Sydney suburbs has a reputation for providing services to its community as well as first class entertainment and social functions for it's membership base.

CLIENT'S GOALS The Client recognised the need to ensure that they were able to maximise the limited funds that were available to it from their operations and memberships. They wished to maintain their donations to Community and Sporting clubs while ensuring that their members received the best possible facilities.

PROJECT SUMMARY A range of costs were reviewed, including Telecommunications, Printing, Office products, Hospitality Consumables, Power and Security.
Each area of expenditure was profiled, user needs identified, taken to market and "best solutions" identified. The selected solutions were than implemented, ensuring that the benefits highlighted were delivered. It was particularly important that the long term relationships between local suppliers and the club were not jeopardised.

OUTCOME Savings of $150k per annum were identified and delivered, an average of approx 25% of the costs reviewed.
In addition, a number of significant process and control benefits were delivered, which, were highly valued. The Client was able to channel this extra revenue directly back into the Clubs activities, thus benefiting the members and their local community.

Specialist Delivers Freight and Courier Savings

EXPENSE CATEGORY Freight & Couriers

INDUSTRY SEGMENT Medical Distribution

CLIENT OVERVIEW The client is a Sydney-based optical equipment provider who imports items as small as Intra Ocular Lenses (IOLs) and as large as Specialist Eye Surgery equipment into Australia and distributes to many customers across the country.

CLIENT'S GOALS RfP were asked to build and analyse a detailed distribution profile to see if more cost-effective approaches were available.

PROJECT SUMMARY It was decided a national courier or road express operation would be best suited to the small items under investigation and a project was undertaken to find the right supplier. During the process, we identified a company with a specialist delivery operation, and compared those services with the incumbent supplier as well as others selected from our database of over 6000 potential freight suppliers.
The results were dramatically in favour of the specialist company.

OUTCOME Freight savings have consistently averaged 34% for this segment of the clients operation.
There was an added savings due to the type of packaging this firm used, which was better and less costly than their competitors.

Large Financial Gains for Superannuation Company

EXPENSE CATEGORY Various

INDUSTRY SEGMENT Financial Services

CLIENT OVERVIEW This Australian organisation, with a Sydney Head Office and multi-State structure operates in the Superannuation Industry. Their Administration Manager has used and been impressed by the RfP’s services previously so when the need developed, had little hesitation in approaching us again.

CLIENT'S GOALS The Client recognised the need to ensure that they were maximising value for their non-staff overhead expenditure, but with limited resources, and a realisation that their market knowledge was limited, made the obvious decision to bring in experts.

PROJECT SUMMARY A range of costs were reviewed, including Telecommunications, Printing, Reprographics, Office Products, Couriers, Records Management, Mail and Data Management. Each area of expenditure was profiled, user needs identified, taken to market and "best solutions" identified. The selected solutions were than implemented, ensuring that the benefits highlighted were delivered. In one case (Printing), the selected provider did not perform as expected, so were replaced with minimum disruption to the Client.

OUTCOME Savings of $500k per annum were identified and delivered, an average of approx 25% of the costs reviewed.
In addition, a number of significant process and control and security benefits were delivered, which, in this industry, were highly valued. The Client is extremely satisfied, and continues to use RfP services as needs arise.

Helping Our Clients to Help Others

EXPENSE CATEGORY Print, Cleaning and Promotional Items

INDUSTRY SEGMENT Not For Profit/Charity

CLIENT OVERVIEW A non-government, not-for-profit agency that provides support, advocacy and counselling services to assist in disease prevention and health promotion. They rely primarily on both government funding and private donations.

CLIENT'S GOALS The Client spent considerable amounts on promotional items for distribution, printing of, amongst other things, posters and booklets to promote improved health practices and cleaning their Sydney Headquarters.
While our primary focus is to reduce costs and therefore increase profits for the commercial sector, it can be seen very graphically that our services can have a great impact on charitable and not-for-profit organizations. As we concentrate on the reduction of non-core expenses, funds can also be freed up for human resources also.

PROJECT SUMMARY After being contracted by the client, we managed to reduce the costs of promotional items by 46%, print by 21% and cleaning by 13%. This meant that they had over $35Kpa extra to spend on consumables, $23Kpa extra to spend on marketing literature and posters and over $5Kpa extra towards administration costs.

OUTCOME Our efforts resulted in a delivering the client an extra $63,000 per year without increasing their annual budgets! (Note that these amounts are net of any fees and averaged over a 3year period).

Reprographics Costs Reduced by over 30%

EXPENSE CATEGORY Reprographics

INDUSTRY SEGMENT Entertainment

CLIENT OVERVIEW This Australian entertainment organisation has over 40 sites located in all the major centres. The organisation has used the RfP services for a number of projects.

CLIENT'S GOALS As is often the case, the organisations internal print (reprographics) needs had been organised at site level. Consequently a number of providers were involved, contractual obligations were unclear and the use of current technologies was limited. RfP were asked to review the situation, with the objective of identifying and developing a structured provider arrangement with cost and technology benefits.

PROJECT SUMMARY Working with operational management and staff, RfP firstly developed an understanding of the existing situation, identifying the cost profile, contractual obligations and site needs (including a number of site visits). This was confirmed with the Client and taken to market. A suitable provider identified, who were able to offer a total print solution for each site (previously ad hoc), recognising the varying needs site by site.

OUTCOME A single supplier solution was identified. This included the elimination of numerous old contracts and outdated equipment, and the upgrading of existing equipment where contracts were current.
Each site has been equipped with current technologies, improved outputs and all at lower costs than previously experienced. The contractual position is now understood and average savings are in excess of 30%.

Telecommunications Costs Slashed Without Changing Carrier

EXPENSE CATEGORY Telecommunications – Fixed Lines, Mobiles and Data

INDUSTRY SEGMENT Complementary Pharmaceuticals

CLIENT OVERVIEW Based in New South Wales this organisation is a household name and leader in the Complementary Pharmaceuticals industry for over 70 years.

CLIENT'S GOALS The client had been advised by a telecoms consultant that only minimal savings could be achieved over their current telecommunications arrangements. RfP were asked to benchmark the proposed supply agreement.

PROJECT SUMMARY Armed with extensive knowledge of current rate trends, RfP's Telco team was able to negotiate significant savings without changing carriers.
According to the company's Chief Financial Officer, "The RfP team managed to achieve substantial net savings to our telecommunications costs over and above those achieved by another consultant. Their independent, results-based approach drove them to work with our incumbent supplier to get major savings without the need for any changes to our operating systems."

OUTCOME RfP negotiated a revised agreement that resulted in savings of 11% on fixed line charges, nearly 34% on mobile phone charges as well as over 22% on Data and internet costs.

Consolidation of Accounts Reaps Rewards for Publisher

EXPENSE CATEGORY Telecommunications

INDUSTRY SEGMENT Publishing

CLIENT OVERVIEW Our client is one of the world's leading publisher and information provider employing over 35,000 people globally. Australian turnover is in excess of $200 million.
The fixed and mobile telephone component of the overall Telecommunication spend amounted to well over $1M annually.

CLIENT'S GOALS The need to have a coordinated telecommunications strategy was considered vital. Rationalisation of providers was expected to provide significant operational advantages as well as cost benefits.

PROJECT SUMMARY While the benefits of a unified approach was well understood at the senior levels of the client, resource scarcity meant that the project would have to be outsourced to have any chance of timely implementation.
As the chosen consultant, RfP undertook the onerous task of collecting and collating data from the numerous accounts across divisions and geographies.
Once a profile was determined we then worked with key stakeholders to analyse and compare cost and technical criteria that were derived from the numerous submissions.
In managing the evaluation and implementation processes, RfP was able to deliver results exceeding any expectation of the client, both in cost and operational terms.

OUTCOME In rationalising the number of suppliers and streamlining accounts, net savings for fixed line and mobile telephones amounted to almost $200,000 per year, with usage charges dropping by 28%.
Consistent electronic reporting also greatly assisted cost analysis between companies and divisions.

Telecoms Audit Reaps Rewards For Entertainment Organisation

EXPENSE CATEGORY Telecommunications Audit

INDUSTRY SEGMENT Entertainment

CLIENT OVERVIEW This Australian entertainment organisation has over 40 sites located in all the major centres both inner city and regionally. The organisation has used RfP services for a number of projects other than telecommunications.

CLIENT'S GOALS The need for a comprehensive review of services (lines) and equipment (PABX’s) was considered vital to provide a coordinated telecommunications strategy. Time pressures and the lack of tools to undertake the project restricted the Clients ability to handle this internally.

PROJECT SUMMARY As the chosen consultant, RfP undertook the onerous task of collecting and collating data from the suppliers and Telecoms accounts. A site by site summary of all services was then created to give the client a clear understanding of the profile of each location.
Once a profile was determined we then worked with key stakeholders to analyse and compare cost and technical criteria that were derived from the numerous submissions.
In managing the evaluation and implementation processes, RfP was able to deliver results exceeding any expectation of the client, both in cost and operational terms.

OUTCOME Through carrying out a complete audit RfP identified 306 unused or unnecessary lines without interruption to the business operations, this resulted in savings of $120,000. In addition to this we renegotiated the PABX lease and maintenance agreements for all 40 sites and brought them all into alignment with a common contract end date. This resulted in a further savings of $85,000 per annum and left the client with a clean manageable telecoms portfolio.
Total Savings - $205,000 per annum

Hire Company Saves 21% on Uniform Costs

EXPENSE CATEGORY Uniforms

INDUSTRY SEGMENT Retail Hire Company

CLIENT OVERVIEW Australian owned hire company with over 60 branches around the country.
A strong corporate identity is reinforced through uniforms worn by counter and yard staff.

CLIENT'S GOALS Whilst the primary goal was to reduce the total cost of staff uniforms without compromising the existing quality, a concern had been raised regarding inconsistencies with logos and colour matches due to variance from approved suppliers.

PROJECT SUMMARY Working with operations and marketing managers, Rfp found that there were three approved suppliers and over 20 non-approved suppliers that were being used around the various regions. A major reason for purchasing from non-approved suppliers was slow delivery, especially of personalized items, from the major contracted supplier. As a result of our tendering process, RfP was able to aggregate the various suppliers of clothing and headwear to achieve a 21 % savings on costs in this category.
Side benefits of this project arising from reducing the number of suppliers have been that the appearance of clothing and logos was fully standardised and also that the ability to track costs and supply performance was greatly simplified.

OUTCOME RfP successfully implemented a new supplier with local embroidery capability, which not only improved delivery performance and general appearance, but also reduced costs by over 21%.
In summary, the client generated a cost reduction of 21% and an improved corporate image in exchange for a minimal internal resource investment.

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