Busy Bees FD, Simon Irons, first met with Adrian Burton, Auditel, and although sceptical about the Auditel proposition, a trial project was agreed to review water charges across the company’s 214 nurseries. Realising the scale of the project, Adrian enlisted his Auditel colleague, Neil Calcutt, and a plan of action was agreed to assess each nursery.
Over a six month period, Auditel were able to recoup over £60,000 worth of water rebates and identified ongoing annual savings in
excess of £20,000.
Following the water success, Simon Irons then invited Auditel to meet with department heads to identify other projects where Auditel might be able to streamline costs.
As a result of this exercise, a project was identified to help Busy Bees with a tricky negotiation with their current telephone supplier, as they were currently in negotiation of 60 separate contracts covering their entire telecoms estate and a 5 year contract was under consideration. Paul Creaser, Busy Bees IT Manager, had already obtained some savings, but felt an impartial view of the proposal would be sensible.
Adrian explains how he was able to help Paul. ‘’What Auditel were able to do was use our knowledge of the market to identify areas for additional savings, and also negotiate with the incumbent supplier to achieve a common end date for all the existing contracts.’’ This resulted in a shorter 2 year agreement being entered into, and a single common end date for all contracts. The annual additional saving obtained following this work is estimated at £18,000.
The next area looked at was mobiles, where Paul had already achieved significant savings. Auditel’s role was to review the various proposals received from the tendering exercise conducted by Busy Bees, and provide advice on the most appropriate solution for the business. Auditel’s work has provided Paul with peace of mind that Busy Bees are currently receiving best value.
Most recently, Auditel was asked to assist with a dispute over a final electricity bill at one of the nurseries. The result of this was a 90% reduction in the charge and a refund cheque from the supplier.
Financial Director Simon Irons adds, “we have a large cost base of which around 90% is personnel, and this is where we must concentrate our efforts. We lack the time and knowledge to look for efficiencies and savings in more minor expense lines and Auditel allow us to take these opportunities, without diverting attention from our main goals.”