Expense Reduction Analysts helps ETEL save $183,000 per annum

Telecommunications and Technology

ETEL Limited, a New Zealand company, specialises in the design and manufacture of distribution transformers. ETEL is well established in New Zealand, Australia and the Pacific region. Offices and warehousing facilities are located in Melbourne, with Auckland’s industrial complex hosting engineering services, training rooms, offices and a five plant manufacturing facility.

Since our initial engagement with ETEL in 2012, ERA has progressively undertaken a range of cost reviews across a number of cost centres.

Categories reviewed to date include;

• Pallets and wooden packaging
• Export and Import freight
• Domestic freight
• Office consumables
• Packaging consumables
• Health and Safety consumables

Each of the projects involved benchmarking ETEL’s current service and quality requirements as well as the individual existing pricing structures. New prices were sought from the market for each individual cost category and ERA achieved superior pricing as well as enhanced service and quality standards.

The options were presented to ETEL who made the decision, on a case by case basis, as to which supplier suited them best. In some cases, the incumbent suppliers were retained (at better prices) while in other cases, ETEL chose to move to new suppliers.

Savings varied, by category, from 6.2% right through to 21.3% with a total of $183,000 per annum in savings achieved. In all cases, better service and quality features were delivered along with greater transparency.

ERA facilitated any transitions to new suppliers and coordinated the formulation of Service Level Agreements for each cost category. ETEL was very happy with the results and has recently re-engaged ERA for some additional expense categories.

“ERA has achieved significant savings across a number of expense categories for us, while ensuring that our supplier relationships remain robust”

Peter Leece - Chief Executive

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