Valvoline gets business running smoothly

International company Valvoline is a leading marketer, distributor, and producer of quality branded automotive and industrial products and services across 140 countries worldwide. The company is constantly reviewing its business overhead costs, but the process is time consuming and a drain on valuable staff resources. For this reason, Valvoline brought in cost reduction experts Expense Reduction Analysts in Australia on a contingency fee basis to identify cost savings, leaving Valvoline free to focus on its core business.

Expense Reduction Analysts' market investigation revealed that Valvoline was paying above market rates for most of its stationery and computer consumables. Expense Reduction Analysts recommended that Valvoline appoint a new provider who utilizes a state-of-the-art supplier-based internet ordering system. A common supply "basket" of catalogue items was prepared for all Valvoline offices to control ordering as a free, value added service. Monthly and YTD basis reporting allowed for more control and management of the expenditure. The move resulted in savings of 20 percent to date and further savings are expected.

With a Sydney-based headquarters and sales offices located in every state in Australia, Valvoline has a heavy dependence on overnight couriers. ERA conducted an investigation which revealed a non-incumbent as a best value provider. The company uses an Internet tracking system that monitors the delivery status of every package. The appointment of the new provider resulted in savings of 17 per cent to date.

"The Valvoline relationship has worked particularly well because the company was already attuned to the idea of cutting overhead costs, and welcomed the low-risk assistance that Expense Reduction Analysts could provide," said ERA Consultant Derek White.

"Overall, Expense Reduction Analysts has exceeded our expectations," added Neale Clark, financial accountant at Valvoline. "Expense Reduction Analysts carefully assessed our requirements, minimized the staff time required, and implemented processes that have not only enhanced our internal capabilities but are also going to provide benefits in the long term." Your success story is waiting to be written. Get started lowering costs for your company.

Featured Case Studies