Auditel’s strengths and team-based approach add significant value to The Norman Hay Group

Several years ago, Auditel Cost Management Specialist, Ruth Dawe called The Norman Hay Group to request a meeting and the business relationship grew from there.

Since the 1930s Norman Hay has been at the forefront in the design, development and application of innovative surface treatment products and processes.

Head-quartered in the UK and operating in over 25 countries worldwide, Norman Hay has four main businesses:

  • Ultraseal, the market leader in impregnation chemicals and process equipment
  • Surface Technology, specialists in the development and application of high performance surface treatments
  • SIFCO Applied Surface Concepts (ASC), global leaders in selective plating through The SIFCO Process
  • NHE, manufacturing bespoke process plant and equipment

Norman Hay plc remains committed to continual improvement of process and has been recognised as one of the 1,000 Companies to Inspire Britain.

Core strengths

Ruth says, “Norman Hay had clearly kept a very close watch on their costs in all areas of their business. But I was able to offer added value with Auditel’s core strengths: time to focus on the detail; sophisticated analytical tools; expert market and technical knowledge, and effective buying power.”

Another key benefit was Auditel’s ability to provide greater visibility and understanding of The Group’s complex spend profiles across multiple companies and locations.

Norman Hay’s Group Finance Director, Nick Ogden takes up the story, “We were a diverse group with no centralised purchasing function. With the assistance of Auditel, we initially looked at those areas where there was commonality of spend across the Group to see whether there were savings to be obtained from buying in greater volumes.”

Specialist knowledge

Ruth explains, “With our bespoke tools and specialist knowledge of supply chains we were able to analyse procurement for both their group and individual sites. This in turn led to group solutions being sought for the categories under review, further leveraging the returns across a wide range of cost areas.”

Auditel’s team approach pays dividends

Ruth continues, “If I don’t have the specialist knowledge myself, I know someone in the Auditel network or a trusted third party who does.”

“For the Norman Hay Group, I applied my knowledge of Communications and Business Consumables. But I also called on the expertise and experience of Auditel category and sector specialists Laurence Fitch for Stationery and Energy; Martin Wallis for Waste, Hazardous Waste, Freight & Logistics; Stuart Spencer for Water, and Jane Campbell to analyse Vehicle costs. By bringing this team approach to bear, we have been able to deliver some very significant improvements for the Group.”

Additional service providers

Nick adds, “Auditel also introduced other service providers where additional specialist support was needed. This is not always cost driven, as there are certain areas where we need to strengthen from a compliance perspective, and Auditel have known people through their network.”

Savings achieved

Initial Head Office savings were achieved on Fixed Communications (15%), Mobiles (23%) and Head Office Stationery (12% savings).

Over the last 4 years, group savings have also been achieved on Fixed Communications, Mobiles, Stationery (with a 34% saving) and Water.

Ongoing management

A key part of Auditel’s role is to ensure savings and best value are achieved on a continuing basis. Continual focus and review of invoices, contracts, industry changes and maintaining strong supplier relationships is essential. The Norman Hay Group have a large amount of international travel so it is vital to keep a finger on the pulse of certain areas such as mobile communications, which require constant monitoring and management in a fast moving market.

Looking ahead

Currently Auditel are implementing agreed changes to Waste and Hazardous Waste; and are currently reviewing Freight and Logistics; Travel and general consumables.

Positive outcomes

The combination of Auditel’s people, tools, knowledge and strategic cost management process is highly valued at The Norman Hay Group. Nick concludes, “Auditel have helped us generate significant savings, and are fully appreciated by all Norman Hay Group staff who work with them.”