New England manufacturer dons extra profits of $37,000
Cost of uniforms reduced 28%
A well established, privately owned New England manufacturer of products used in the automotive and aerospace industries invited ERA to look around its factory to determine whether expenses could be reduced and efficiencies increased.With more than $200 million in sales, 2,000 employees and several plants worldwide, the factory uses state-of-the-art equipment such as computer-aided design, robots and numerically controlled machines.
ERA spotted cost-savings opportunities in non-core manufacturing expenses such as uniform overalls, shirts, pants, jackets, aprons, mats, mops and cleaning cloths.
Uniforms are related to worker safety
Because many of these items are related to worker safety, analysts spent time on the factory floor with Safety Managers and toured the incumbent supplier's facilities to understand clothing safety standards such as flame-resistance and protection.
Project Information
- Category - Uniforms
- Annual Spend - $132,000
- Annual Savings - 28%
- Hidden Savings - $37,000
- Money saved per client hour invested - $6,700
Based on the information they assembled, consultants prepared a Request for Proposal and solicited bids from the incumbent and several other suppliers. The incumbent responded by simplifying pricing, waiving certain charges and presenting more attractive terms for replacing uniforms. ERA recommended retaining the incumbent based on its new, lower prices, familiarity with the manufacturer and good service record.
The ERA Consultants also recommended other ways to save money on uniforms. For example, by putting procedures in place, less clothing would be lost when employees leave the company but neglect to turn in their uniforms. Your success story is waiting to be written. Get started lowering costs for your company.
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