Case Studies 2

Avenue UK provides professional strategic assistance in delivering operational and procurement projects.

These case studies provide a snapshot of selected projects and demonstrate the wide range of assignments and projects we have undertaken:

The majority of these case studies were delivered via our Purchasing Support service

Stationery

This client used a variety of suppliers to provide stationery and related products.  This area was competitively tendered.  A specification was designed to consolidate this expenditure and to utilise web based ordering for an agreed catalogue of products.  Floor based stationery stations reduced the need for individual stores and central controls (and pricing agreements) were implemented to deal with bespoke requirements.

International Couriers

This client used a variety of suppliers to provide international courier and international mail services.  This has been reduced to two main suppliers with occasional use of two back up suppliers.  The use of web based booking technology has eliminated the need for a manual paper process and has improved the tracking of deliveries.

Utilities Support

Following a review of existing processes, Avenue initiated a tender process for the provision of specialist advice in the procurement of Gas, Oil, Electricity, Water and Gas.  The provision of  an energy audit was a further feature of this contract.

In a rising market, the utilisation of this specialist advice resulted in achieving lower than market rates, saving approximately £47k over a two year period.

A usage reduction of £16k has been identified through the adoption of recommendations from the energy audit.

Mechanical & Electrical

This client used a variety of suppliers to provide Mechanical and Electrical related Services.  Although lifts maintenance and fire alarm systems could not be incorporated into new arrangements, all other services could be supplied or directly subcontracted to a single contractor.

This area was competitively tendered on a semi-comprehensive repair/replacement basis, with capped costs for the client.  The process also allowed for the client to benefit from a resident engineer

Landline Telecommunications

Following in depth analysis of fixed landline telecoms services and infrastructure, a Tender document was issued to 4 service providers.  Avenue UK secured an improved financial outturn as a result of the Tender process, resulting in a reduction in tariffs and a saving of 26% on call and maintenance charges.

The client could have achieved additional line rental savings from our recommendations on infrastructure voice circuits, the number of which could have been reduced without a reduction in service levels.

Travel Services

Analysis of this area showed that the client did not operate an effective pre-trip approval process, that the service provider did not operate to any formal service specification and that up to £500K of hotel expenditure was actioned by individuals organising their own affairs rather than utilising the purchasing expertise of the travel agent.  Individual invoicing per transaction resulted in 1800+ invoices/annum.

Our work in this area was multi-departmental.  Avenue worked with the accounts department to specify, procure and implement a Travel and Expenses system, and with the finance department to specify and negotiate a global credit card solution, including use of a Lodge Card.

Working with the clients travel manager we developed a specification and revised the internal policy documentation for this area.  Negotiation with the travel supplier resulted in advantageous terms of trade and airline route deals were agreed with Cathay Pacific and Virgin Airlines delivering a £40K saving.

Use of lodge card payment and consolidated invoicing reduced the invoice count by more than 1800/annum.  Corporate deals for the provision of hotel accommodation will result in an additional annual saving exceeding £50K.

In total this project has had a positive impact for three key support functions at this client.  In addition to direct savings of £90K  (and the future savings of £50k for hotels accommodation) the consequential benefit of a streamlined process and fewer invoices is valued at circa £50K.

The eventual total benefit to the client will be circa £190k / annum

Cleaning and Associated Services

This client used a variety of suppliers to provide Cleaning and related services.  We created a combined specification and service level agreement, consolidating requirements for Daily Office Cleaning, Window Cleaning, Technology Cleaning, Consumables, Rentals and Carpet Cleaning.

A specification and service level agreement was developed for this service area followed by a competitive tender.  Monitoring of the resulting contract has ensured that standards have consistently risen throughout the contract term.

Corporate  Credit Cards

Analysis of this area showed that the client did not operate an effective global approach. Three providers were used in the UK and in total five providers were used globally.  The client did not operate an effective policy in this area, resulting in many executives utilising their own credit cards for corporate expenditure.  Nor was there any use of departmental Ghost Cards or supplier based Lodge Cards.

Avenue UK worked with the finance department to identify key requirements for this area and analysed existing expenses to establish that the corporate card base should be doubled.  Taking into account the potential card spend, both by individuals and via lodge cards and procurement cards on a global basis, favourable terms were agreed with a leading card provider with a simplified payment structure and expenditure rebates to the corporate entity.

Whilst the direct savings are minimal, the simplification of the process, electronic data feeds (direct into the Travel and Expense system), and enhanced management information will deliver a variety of consequential benefits to the client.

Catering Services

Avenue UK worked with the existing caterer over a period of months to assess opportunities for cost improvement – without impacting quality.

The caterer adopted Avenue UK’s bespoke financial reporting tools which deliverers a higher level of clarity than existing caterer supplied management information.  This demonstrated that Hospitality Catering costs were higher than they should be.  A benchmarking exercise established that a cost saving of £50K was achievable.  In line with the clients instruction a negotiated settlement of a £34k reduction was agreed.

Multi-Function Devices

This project was undertaken to assess the viability of replacing all floor based photocopiers with Multi functional Devices (MFD’s) and to determine the minimum number of additional MFD’s required to provide adequate printing resources to reduce and ultimately replace the desktop/workgroup printers.

The client utilised 168 desktop/workgroup printers and 14 analogue photocopiers.  The photocopying equipment was old, expensive to operate and due for replacement.  The volumes of printers were deemed excessive, with an allocation of 1 printer per 2.5 members of staff in some departments.

A print audit was use to identify usage by groups and departments.  This information was used to quantify the machine requirements in terms of specification and quantities.

Working with the heads of the Facilities and IT Departments, the specification was defined.  This requirement was competitively tendered with the successful supplier undertaking the replacement and on-going support of an initial 14 MFD’s with an option to provide additional MFD equipment as the number of desktop printers is reduced.  Print audit software was also provided within this contract, to ensure that ongoing monitoring of print/copy usage was available to the business.

Mobile Telecommunications

Avenue UK demonstrated through a benchmarking exercise, that a significant improvement to existing Mobile Communications services could be achieved.  A tender document was issued to 4 service providers for the provision of service to approximately 200 mobile handsets and Blackberry devices.  The Tender process resulted in the incumbent supplier being retained, but with improvements in service levels, a reduction in administration overheads, invoices generated and a saving of approximately £40k/annum