One of our clients was certainly glad that they did. We were originally asked to review their electricity spend. On the face of it, little could be done. The client was locked into a contract until the end of the next year on rates which were quite acceptable. We did, however, obtain half-hourly data from the supplier. Using our expertise, we noticed a strange consumption profile more typical of electrical heating…yet this building had gas-heating controlled by a sophisticated system.
Closer investigation revealed that, instead of requesting the control system to be adjusted, staff members were bringing in portable electrical heaters to raise the temperature to more comfortable levels. To make matters worse, the portable heaters were placed near room thermostats, causing the efficient gas-heating system to switch off prematurely. The net result…heating costs in the affected rooms had increased by a factor of five!
We quickly turned our attention to water and sewerage charges. Our in-house analysis and on-site inspections identifed a number of issues which we subsequently resolved:
- water consumption was ten times greater than our models forecast.
- significant water leaks were present, both above ground and underground. We prepared detailed calculations to support a substantial reclaim of non-return to sewer charges.
- incorrect staff procedures were leading to excessive water consumption.
- increased administration to invoice client’s tenant (located in a separate building) for water consumption. Remedied by arranging for a separate meter to be installed.
- stagnant water in a defective water tank posed a serious Legionella risk.
- no bypass was fitted at the water meter. In the event of a substantial fire, there would have been insufficient water flow in the fire hydrant system.
As a result of our involvement, specialist knowledge, negotiation and project management, we achieved cost savings of at least £16,000 per annum for the client. It’s impossible to place a financial value on the health and safety issues which were also remedied, but knowing that there is now greater peace of mind at the client’s site is tremendously satisfying.
“Even if you think you have all your costs under control…
it wouldn’t hurt to have an Auditel Business Health Check.
Just to be sure.”
About Auditel’s Business Health Check
Auditel’s Total Cost of Purchase® service starts with a Business Health Check. This is an independent assessment of your business costs, followed by a comprehensive report which identifies every opportunity to:
- reduce costs; and
- improve efficiency.
We implement our recommendations and project manage the entire process for you.
We then manage these areas on an ongoing basis, giving you reassurance that these cost areas are under control.
Even if you think you have all your costs under control…it wouldn’t hurt to have an Auditel Business Health Check. Just to be sure.