Client with production plants in the Czech Republic and Germany - a major manufacturer of furniture equipment, especially for the healthcare sector

(the Kloepfel Consulting EE team was in charge of part of the project in the Czech Republic)

Project duration: 8 months (1st phase)

Focus of the project:

Based on the initial analysis of savings potential, the following key commodities with the highest potential were defined:

Wood materials | Steel sheets and profiles | Packaging materials | Plastic granules | Logistics services | Agency employment

The main approaches used in cost optimization:

• Wider tendering procedures with the use of consolidation of volumes, expansion of the portfolio of suppliers
• Individual negotiation of business conditions
• Consolidation and standardization of materials between sister plants
• Price reduction through optimization of technical parameters of selected materials
• Optimization of necessary work capacities

 

The results:

(jointly for the plant in the Czech Republic and Germany):

Goal set by the client - saving: 1.5 million. Eur

Potential savings identified at the beginning of the project: 1.3 mil. Eur

 

(for a plant in the Czech Republic)

Real "cash-in" savings achieved during the project: 0.44 mil. Eur

Implemented optimizations with savings in the next 12 months: 0.54 mil. Eur

Final savings achieved: 0.78 mil. Eur

 

Comment:

Above all, the implementation stage of the project was negatively affected by the "Covid era", when after the biggest wave of the epidemic, the client experienced a significant drop in sales. As a result, the savings potential could not be realized to the expected extent.