Simon Perkins analyzed ResMed's logistics spending and found they could save money by consolidating their three suppliers into one. Negotiating with the new sole supplier, he achieved significant tariff reductions and cost savings for ResMed. This freed up the Operations Manager's time to focus on other responsibilities and allowed ResMed to fulfill more orders. Perkins also worked with ResMed and the supplier to implement a new distribution system allowing customers to pick up orders from local convenience stores, improving the customer experience. As a result of the savings and process improvements, ResMed expressed that Expense Reduction Analysts not only achieved cost savings but enhanced customer relationships.

1. Summary of savings
Logistics
Office Supplies
Mobiles
Postage
Photocopiers
25%
24%
38%
25%
60%
Smarter Spending > www.expense-reduction.co.uk
ResMed changes lives by developing,
manufacturing and distributing medical
equipment for treating, diagnosing and
managing sleep-disordered breathing
and other respiratory disorders. They
develop innovative products to improve
the health and quality of life of those
who suffer from these conditions,
and work to raise awareness of the
potentially serious health consequences
of untreated sleep-disordered breathing.
“There has been much more public
awareness of sleep apnoea in recent
years, and ResMed, originally based in
Australia, have been at the forefront of
the development of products to treat the
condition,” says Hugh Swainston, Client
Manager at Expense Reduction Analysts.
“We won the contract to look at their costs
and analysed five categories of expenditure
in the first instance. Logistics immediately
presented itself as a hugely important area.
Achieving next-day UK delivery – having
a European base in the Netherlands – was
an issue. I was fortunate to be able to
call upon the services of Simon Perkins, a
Logistics Project Specialist colleague, to
analyse ResMed’s requirements.”
Simon Perkins takes up the story: “I had
worked in Logistics for 10 years, so, when
I analysed ResMed’s spend on their three
suppliers, I knew immediately that the
tariffs they were on could be bettered, and
that therefore considerable savings were
possible through consolidation
and negotiation.
Management support: freed time,
valuable process enhancements
“It was agreed that we would reduce the
three suppliers to one, and I negotiated
hard with the resultant provider to achieve
best value. As a direct result of these
savings, the Operations Manager was
able to justify extra warehouse headcount
to her manager. This in turn resulted in
ResMed’s being able to fulfil more orders
and generate more income.
“The Operations Manager noted that our
support and attention to the detail of the
supplier contracts freed up her time to
focus back on her core responsibilities.
“ResMed also wanted to develop their
direct customer channel, and I worked
with them and the supplier on a new
system which meant, crucially, that the
householder did not have to be at home to
receive their goods.
“Now, the customer can go onto a
designated website, type in their postcode
and select a local convenience store from
which to collect the products that they
have ordered.”
Ang Dunnill sums up the benefits of her
company’s partnership with Expense
Reduction Analysts: “Not only have
Expense Reduction Analysts saved
us a significant amount of money on
Logistics and other important areas of
expenditure, but they have also worked
with us to enhance our processes
and thus our relationships with our
customers. We could not have done this
without them.”
> ERA Success Story
Logistics savings,
improvements for ResMed
Expense Reduction Analysts rationalise suppliers,
save management time and enhance customer experience.
“Expense Reduction Analysts have done a great job for us,
not just the fact that they have delivered impressive and
valuable cost savings, but equally important, they have allowed
me to focus back on my core responsibilities. And they have
suggested changes to our distribution model that have greatly
enhanced the customer experience”
Ang Dunnill, Operations Manager, ResMed UK