Our Clients: LoneStar Fasteners Europe

LoneStar Fasteners Europe

LoneStar LogoLoneStar Group is a global manufacturer and supplier of standard and high performance fasteners to the world’s energy and heavy engineering markets. It employs over 10000 employees based in its worldwide network of manufacturing and distribution operations.

LoneStar Fasteners Europe is based in Wednesbury in the West Midlands and is the major trading site for Europe in the Group. Its markets are the Oil and Gas, Petrochemical, Renewable Energy and Power Generation sectors and the world prices for oil, gas and electricity are significant factors in its trading markets.

In the recession years 2008 – 2014 the price of crude oil soared to in excess of 100$/ barrel. On the introduction of US Shale Gas OPEC responded by overproducing in an attempt to see off this new competition. Prices plummeted to as low as 28$/ barrel and it is only recently there has been a mini recovery to around 48$/ barrel. An uncertain and sometimes volatile market.

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Lone Star

LoneStar Fasteners’ FD, Jon Evans enaged Auditel to take an objective, fresh look at their costs and identify sustainable savings opportunities. He 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 inhouse 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, contractural terms, supplier relationships, service needs and billing errors.

“We got the best of all worlds really. We didn’t have to undertake the work, we knew that the entire range of suppliers was being considered, we were involved to decide which supplier we wanted to go with and finally… we made substantial savings that we would not have had without the involvement of Auditel. An all-round win, win, win!” – Jon Evans, Finance Director

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.’

Initial review

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.

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