Industry: Private Equity Location: UK
Supporting the operational efficiency improvement program post acquisition
Our client is a UK based mid cap private equity investment company with a broad range of almost 100 portfolio companies across c180 countries. The current portfolio comprising c80 businesses and £7bn of assets under management. Our client operates principally from the UK with offices in the US and Asia.
Our client had recently acquired a financial services organisation with offices throughout the UK and Asia and were working with the management team to support a rapid growth agenda.
Odesma were engaged to support the operational efficiency improvement program post acquisition, to drive in year operating cost reduction from savings in third party spending. The focus was on achieving cost reduction quickly but in a way that could be sustained for the medium to long term.
Odesma used our fast analytics and contract review framework to establish the opportunity and priority focus areas within the first 5 days of our engagement. We then deployed a small team of subject matter experts to work alongside key stakeholders across the businesses, identifying 37 projects across core areas of operating expenditure.
The team focused on three core areas to deliver savings:
- Demand process & specification optimisation
- Consumption reduction
- Sourcing and supplier re-negotiation
Our consultants completed the program, including all analysis, planning, supplier negotiations and contracting across 37 projects in 100 days from engagement.
- 22.5% cost reduction across the in scope categories of operating cost.
- 37 projects completed, with supplier transitions completed and new contracts in place
- New policies and processes embedded across the organisation for recruitment of perm and temp staff, travel, car fleet and legal services acquisition.
- 12.9 : 1 return on investment, fees to in year cost reduction achieved.