Reducing costs without compromising service quality
adi Group has over 17 businesses, offering engineering solutions to multiple sectors and markets globally. Its primary focus is to deliver value engineered solutions – that result in lean practices with increased efficiencies and reduced costs – for its clients.
adi was faced with the challenge of controlling costs across it 17 businesses and throughout the whole of its portfolio of provided services, support systems and any purchased items.
The main focus was to reduce costs, without compromising on quality, or impacting client experience.
Although they had in-house procurement resources, their team’s experience was restricted to day-to-day procurement needs. They lacked the knowledge and bandwidth to perform such an in-depth strategic analysis, which is where eXceeding’s cost optimisation expertise came in.
It was identified that there were 3 key challenges, that needed to be considered:
Operational and technical complexity
This extended to timescales, cross-organisational stakeholder profiles and a heightened governance requirement
Multiple incumbent suppliers
With ‘unfit for purpose’ contracts, service delivery levels and account management
Reducing overall costs
while improving processes and procedures, supplier SLAs and maintaining compliance
eXceeding acted as a central point of expertise and took ownership of all aspects of the project. Through delivering cross-project reporting to all stakeholders and managing resource dynamically with adi team members, eXceeding ensured that over-resourcing was avoided and very best-value was achieved.
adi has established a new, more structured and reliably resourced procurement process. This, along with cost effectiveness and efficient Supplier Relationship Management (SRM), has enable adi to considerably reduce cost.
Additional recommendations are continuously being implemented. The ongoing engagement with eXceeding, means adi receives regular support to continually improve its procurement strategy and execution of cost savings.
By engaging eXceeding to conduct a holistic review we were able to develop a coherent corporate strategy across the adi group of companies that took advantage of our growing market position. The savings realised and delivered by eXceeding has paid their fees many many times over. We have subsequently engaged them on further projects. Through their professional and methodical practices, we were able to reduce the number of suppliers and develop win-win commercial arrangements with key supplier partners. The quality of eXceeding’s team and their flexible approach made it easy for adi to work with them and to achieve our goals.
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With a large number of incumbent sub-contractors across the UK, all with differing contract terms and SLAs, Novati was looking to reduce the number of suppliers, optimise costs, whilst also improving its supplier relationship management approach.
