The Royal Society for the Prevention of Accidents (RoSPA) engaged Expense Reduction Analysts to identify ways to reduce costs. Expense Reduction Analysts took a holistic approach, examining each category of RoSPA's expenditures. They were able to align RoSPA's utility contract renewal dates, allowing them to negotiate a 45% savings on electricity and 5% savings on gas. Expense Reduction Analysts also achieved savings of 16% on fixed line communications, 47% on mobile communications, 12.5% on office supplies and print, and 96% on merchant card fees through changing RoSPA's payment scheme. The overall engagement has resulted in substantial annual cost savings for RoSPA.

1. Smarter Spending > www.expense-reduction.co.uk
> ERA Success Story
Huge savings no accident
as RoSPA prospers
Established more than 90 years ago,
the Royal Society for the Prevention of
Accidents (RoSPA) has a mission to save
lives and reduce injuries. By providing
information, advice, resources and
training, RoSPA is actively involved
in the promotion of safety and the
prevention of accidents in all areas of life
– at work, in the home, on the roads, in
schools, at leisure and on (or near) water.
Andrew Robertson of Expense Reduction
Analysts approached RoSPA early in 2009:
“I was fortunate in some ways that Mark
Penny had recently joined as Finance
Director,” says Andrew. “Part of Mark’s
remit was to take a close look at costs, so
he was open to our recommendations.”
Utilities were the first category of costs to
be investigated, and they provide a good
example of Expense Reduction Analysts’
holistic approach. Andrew Robertson: “With
a number of sites, and imminent renewal
dates, we had to act quickly. The renewals
were, unfortunately, fragmented, putting
RoSPA in a less than ideal position when it
came to negotiating discounts. However,
we worked by degrees to align the
renewals and strengthen RoSPA’s leverage.
I am indebted to my colleague, Richard
Clayton, for his specialist knowledge in this
area. After bringing the renewals into
line, he achieved a saving of 45%.
“As a charity we are always looking at ways to
reduce costs but Andrew and his colleagues
were able to assist us in the process by bringing
new insights into how best to achieve this.
They did not simply renegotiate but looked
at each category of expenditure holistically,
worked out what was best for us and made
recommendations for a long term solution.”
Mark Penny, Director of Finance and Administration, RoSPA
Calling in specialist expertise
“Indeed, I am fortunate to be able to call
upon such wide-ranging expertise from
across the Expense Reduction Analysts
network – in RoSPA’s case, Mike Stevenson
worked on Office Supplies, Nadim
Vanderman on Postage and Pritesh Patel on
Communications (mobiles).
“Special mention must be made of Ian
Middleton’s work on Merchant Card Fees.
Merchant Card Fees are made up of bank
charges and payment service charges and
RoSPA were being billed on a percentage
basis. Ian switched them to an alternative
payment scheme, which resulted in 16%
and 96% savings respectively.
Mark Penny, Director of Finance &
Administration at RoSPA, sums up the
benefit of Expense Reduction Analysts’
work: “As a charity we are always looking
at ways to reduce costs but Andrew and
his colleagues were able to assist us in
the process by bringing new insights
into how best to achieve this. They did
not simply renegotiate but looked at
each category of expenditure holistically,
worked out what was best for us and made
recommendations for a long term solution.
“Such breadth of vision enabled them
to align all of the utility renewal dates,
to give us greater bargaining power. It
also prompted them to recommend our
changing the basis of our Merchant Card
Fees, which effected a substantial cost
reduction. I would highly recommend
their services.”
Summary of savings
Office Supplies & Print
Communications (Mobile)
Communications (Fixed Line)
Electricity
Gas
Merchant Card Fees
Annual savings due to be realised, some of
which have already materialised.
12.5%
47.0%
16.0%
45.0%
5.0%
96.0%