Insite™ Case Study

A single Insite™ delivered over £1m cost savings and efficiency improvements for a major metal processing organisation over a four year period.

The Challenge

With over 900 suppliers, the customer was aware of several issues, including a fragmented locally managed supplier base, part number and stock duplication, a heavy burden of invoicing and administration, not to mention the fact its engineers were spending valuable time in identifying and ordering parts.

Our brief was to drive vendor consolidation, simplify processes and deliver year on year total cost savings.

The Solution

Run by an experienced Brammer branch manager, our Insite™ service delivered a significant number of improvement initiatives including:

  • Removing duplications and rationalising suppliers, helping increase purchasing power while minimising administration
  • Parts identification and sourcing, which freed-up engineers for value-added activity
  • Consignment stock held by Brammer and paid for only on use, releasing working capital
  • Input to the Strategic Operations Team, helping identify and deliver focussed improvement projects
  • Year on year operational cost savings associated with MRO and industrial supplies
  • Lineside vending technology, reducing ‘walk and wait’ time.

KPIs were established and monitored, and re-set each year to deliver on-going savings.

The Outcome

Before the implementation of Insite™, the customer purchased from over 900 different suppliers. Through establishing vendor reporting and consolidating purchasing, the number of suppliers has decreased year-on-year by around 90 per annum.

Additionally, Insite™ also has resulted in 90% fewer invoice transactions, falling from 3,480 to 364. As a financial saving, the customer’s transactional costs have fallen from £174,000 in the first year to £18,200 in year four despite an increase in production during this period.

In total, over £1m cost savings have been achieved over a four year period, broken down as follows:

Consolidated purchasing leverage saving £279,979
Signed operational cost savings £305,201
Savings on reduced transaction costs £311,600
Savings on reduced inventory carrying costs (consignment stock) £12,185
Savings on reduced engineer requisitioning £109,368
Total: £1,018,333