LoneStar Fasteners’ FD, Jon Evans engaged Auditel to take an objective, fresh look at their costs and identify sustainable savings opportunities.
Jon says, “We knew that as a company we were very good at growing the customer base and producing top quality products, but we recognised that, whilst we had an in-house Purchasing Team, they were focussed on many of the raw materials and did not necessarily have the time or the expertise to review some of the more complex administration overheads.”
A detailed approach
He continues, “What we liked about the Auditel offering was their very detailed approach. They examined all elements of the cost category, and gave us confidence that the job had been done completely.”
Auditel’s comprehensive approach not only takes headline costs into consideration, but also processes, contractual terms, supplier relationships, service needs and billing errors.
Focus and pace
Jon continues, “My team does not have the time to perform the vast amount of work that Auditel undertook. They provided focus and pace to make sure the job got done. It was all done with very little fuss although they were always careful to involve us when we needed to make a decision.”
Following an initial review of the entire cost base, it was clear that some costs were already being managed tightly in-house. John Wardle, heading up the Auditel team says, “Only those cost areas were selected where Auditel could add most value with our specialist knowledge and experience.”
UK and Overseas Couriers
For example, in their comprehensive report on the UK Couriers Project, Auditel found that the quality of LSFE’s existing deal was so good that they recommended remaining with the existing supplier. Despite the work they put into these findings, Auditel made no charge, as no improvements were made.
The Overseas Courier Project, however, was different. Auditel set about benchmarking the current suppliers to today’s marketplace. Through the detailed forensic work it became clear that improvements could be made to the terms in not only the movement of boxes but also in pallets and general freight. Suppliers were researched, interviewed and took part in a detailed tender exercise. This led to an overall saving of 22% in both rates and additional fees.
Fuel Cards and Telecoms
This attention to detail has subsequently led to savings of 8% on Fuel Cards and 28% and 10% on mobiles and landlines respectively. Following these successes, Jon has asked them to continue the good work and review their Waste, Stationery and Postage costs.