Don Foynes, Commercial Director of Reagecon Diagnostics Limited, first came across award-winning Auditel consultant Declan Quinn at a Trade Show in Cork.
He saw in the Auditel proposition an opportunity to have a procurement specialist examine certain areas of Reagecon’s business expenditure just to see what, if any, improvements could be made.
He says, “We engaged Auditel because of the clarity of their proposal and the fact that to engage in the programme represented no risk for our company and plenty of upside potential.”
Utilities and Telecoms
First Declan looked at Reagecon’s utilities and telecoms expenditure. This included electricity and gas management, industrial gas and mobile and fixed line telecoms. His work in these areas immediately bore fruit and delivered significant savings, due largely to Auditel’s buying capability and ability to negotiate better deals.
In addition to savings of 17% on Electricity, Auditel measured and reviewed electrical loading on site and were able to reduce the overall cost of the electrical load by 25%.
Declan then turned his attention to Logistics, which was a much more challenging project. However, by unlocking the complexity, Declan achieved a step change for Reagecon in how they interacted with their logistics suppliers. Previously, Reagecon had been managing up to nine different supplier relationships. Following Auditel’s work they are dealing with just one supplier and one invoice, resulting in many indirect cost saving benefits for Reagecon.
In addition to this, due to a revised logistics programme, managed and coordinated by Auditel, they can now get their products into emerging markets in Asia and South America more cost effectively.
One of Auditel’s strengths is the ability to tap into the expertise of colleagues in specific cost areas. As further projects followed, Declan worked first with Auditel colleagues Denis Brennan, an expert on Stationery and Print and then with Packaging expert Chris Anderton achieving savings of 40% and 55% respectively.
Don is delighted with the results: “The net savings and bottom line impact will be in excess of €250k over the next three years. There are also many indirect benefits from the cost savings put in place such as downstream labour savings due to revised packaging formations. These are not part of the hard number above, but do still contribute to a lower cost per unit produced.”
In fact, Reagecon are so impressed with Auditel that they are recommending them to their key suppliers, service partners and clients – the ultimate accolade!