Mitie reap the benefits of Auditel partnership

Established in 2010, Mitie Ireland is a wholly owned subsidiary of Mitie Group PLC – the UK and Ireland’s leading facilities management and professional services company. Mitie offers a range of specialist services including technical services, security, cleaning, industrial cleaning, landscaping, energy and sustainability, waste and professional consultancy.

Liam Gahan, Finance Director of Mitie Ireland, was well versed in the benefits that Auditel could bring, having worked with specialist consultant, Paul Millican in a previous role. In 2018, shortly after joining Mitie, he once again reached out to Paul with a view to strengthening its existing procurement process.

“I wasn’t convinced that we were getting the best commercial terms with suppliers. So, I asked Paul to come in and review our general ledger and to identify areas where he felt he could make an impact. His approach is absolutely brilliant, and I knew, and trusted, the robustness of the Auditel process.

“We appointed Auditel on a share of savings basis which was an easy buy-in for our MD simply because of the zero-risk approach. It’s worked very well for us with the obvious outcome of delivering more to the bottom line. We started off with fleet, but we gave Paul free rein on our supply base to look at different projects and tell us what was feasible.”

Auditel has supported Mitie with the majority of its non-labour costs. One of the most significant projects – fleet – resulted in a saving of over €1m. And, whilst cost savings remain a priority, Liam adds that Paul’s ability to operate without resorting to ‘any means necessary’ is of both cultural and reputational value.

“Paul’s not about coming in and ‘beating up’ suppliers which is incredibly important. He’s fair and understands the importance of creating relationships that work for everyone. He’s a critical and strategic thinker – questioning the actual consumption, streamlining and consolidating in order to bring efficiencies rather than just squeezing on price. In any negotiations, Auditel shine a good light on Mitie; never making our company look poor or uncooperative. I have 100% confidence in Paul speaking to any supplier or third-party as a representative of Mitie, not least of all because our goals and values are so closely aligned.”

Liam credits Paul with peace of mind and a level of detail and transparency that supports and strengthens the organisation’s future plans: “For me personally, I just have the confidence that things are in hand. From a reporting perspective, Paul provided granularity as to exactly what was driving the incremental gains – that information was critical.” Mitie and Auditel now have a solid relationship based on trust, tangible outcomes and ongoing value-add benefits.

For Liam, the ability to be hands-off is something he encourages other CFOs to consider.

“As testament to his effectiveness, Paul has effectively made procurement within Ireland redundant. He has done what he can in the business, and, for the moment, we don’t need a procurement resource in-house. Forget about the savings that he’s delivered; we’re also saving about £100k alone on payroll. That has been a massive benefit to us on top of everything that’s been done to deliver savings to the bottom line.

“After the initial sign-off process, there isn’t a huge time investment required to work with Auditel. That’s probably one of the most important things for other CFOs to note. You often think you don’t have the time to tackle large or complex projects – everyone is time poor, and especially now with more people working from home – but Paul and his team are able to manage things with very little input or requirement from the company. It goes without saying that I’d recommend them.”