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Exceeding

adi Group

Reducing costs without compromising service quality

About adi group.

adi Group has over 17 businesses, offering engineering solutions to multiple sectors and markets globally. Its primary focus is to deliver value engineered solutions – that result in lean practices with increased efficiencies and reduced costs – for its clients.

Overview.

adi was faced with the challenge of controlling costs across it 17 businesses and throughout the whole of its portfolio of provided services, support systems and any purchased items.

The main focus was to reduce costs, without compromising on quality, or impacting client experience.

Although they had in-house procurement resources, their team’s experience was restricted to day-to-day procurement needs. They lacked the knowledge and bandwidth to perform such an in-depth strategic analysis, which is where eXceeding’s cost optimisation expertise came in.

The challenge.

It was identified that there were 3 key challenges, that needed to be considered:

Operational and technical complexity
This extended to timescales, cross-organisational stakeholder profiles and a heightened governance requirement

Multiple incumbent suppliers
With ‘unfit for purpose’ contracts, service delivery levels and account management

Reducing overall costs
while improving processes and procedures, supplier SLAs and maintaining compliance

The solution.

eXceeding acted as a central point of expertise and took ownership of all aspects of the project. Through delivering cross-project reporting to all stakeholders and managing resource dynamically with adi team members, eXceeding ensured that over-resourcing was avoided and very best-value was achieved.

  1. eXceeding reviewed adi’s procurement strategy, assessing the risks within current arrangements. This included: fraud exposure, compliance, supplier financial stability, invoice validation, T&Cs, work processes and governance, supplier approvals, PO/contract approval, goods receipt and invoice validation.
  2. Carrying out a spend diagnostic exercise, eXceeding worked collaboratively with adi’s procurement team and subject matter team. We identified opportunities for cost savings and deficiencies, whilst highlighting key partners, suppliers and subcontractors.
  3. Our team then went on to execute and renegotiate contracts to deliver cost savings. We put in place constant, meaningful financial reporting, to enable efficient and effective management, communications and ongoing reporting.
  4. eXceeding continued to handle the supplier relationship management (SRM), to ensure rebates were monitored and managed, and further potential cost savings realised and reported to the adi team.

Highlights.

4-year
contract term

Cost savings
in excess of £0.5 million

Supplier consolidation
with ‘fit for purpose’ contracts

Improved compliance
and related policies

The future.

adi has established a new, more structured and reliably resourced procurement process. This, along with cost effectiveness and efficient Supplier Relationship Management (SRM), has enable adi to considerably reduce cost.

Additional recommendations are continuously being implemented. The ongoing engagement with eXceeding, means adi receives regular support to continually improve its procurement strategy and execution of cost savings.