Food ingredient manufacturer trims the fat on travel costs

Manufacturing

Expense Reduction Analysts' cost-saving strategy hailed as best practice by the client's international HQ

Project Information

Industry: Manufacturing
Category: Travel & Accommodation
Category Spend: $448,000 per annum
Savings: $176,000 per annum (39%)

 

The client

Located just outside of Brisbane, the client is a food ingredient manufacturer that produces beef gelatine from hide supplied by abattoirs from up to 700 kilometres away. All of the product is sold as edible gelatine, with 60% supplying the confectionery industry and the remainder sold for dairy, pharmaceutical and jelly crystal applications.

 

The challenge

The client was concerned about the rising travel costs of domestic and international travel within the APAC region to service their growing client base. In addition, the substantial impost of regular visits to the client’s European HQ was weighing heavily upon their balance sheet.

The challenge for Expense Reduction Analysts was to reduce the cost of all aspects of the client’s travel and accommodation costs without impacting on cabin class, hotel star rating and traveller comfort, as well as addressing booking fees and service levels.

The solution

In-depth analysis was undertaken to compare all factors of travel costs including airfares, room rates, car rental rates and transaction fees with the best available offers to demonstrate the scope of the savings opportunity that existed for the client.

Expense Reduction Analysts worked with the incumbent travel management company to achieve the client’s desired outcomes. There was no need to sever a strong, healthy and long-standing relationship between our client and their supplier.

 

The result

The client’s travel policy was significantly enhanced to bring about cultural and behavioural change resulting in improved financial management. Process efficiencies were put in place to facilitate speedy, accurate and policy-compliant booking practices. Reporting procedures were developed to highlight exceptions and pinpoint opportunities for realignment and ongoing improvement via Expense Reduction Analysts’ quarterly auditing and monitoring mechanisms.

As a result, there was a 39% reduction in travel costs for the client. The Australian branch of the company was applauded by the head office in Europe and Expense Reduction Analysts’ cost-saving strategies were adopted by the client on a global scale.

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