Our bottom line is improving yours. Here are some examples:
FORTUNE 500 COMPANY
Situation: This client had aggressively driven IT purchases down to the “best in class” unit cost, but was dissatisfied with the resulting level of service, given its $100 million annual IT budget.
Result: Callydus’ analysis revealed that “total cost” (including support, maintenance, training, inventory carrying costs, functionality, and ease of use) of IT had been neglected. Through a standardization program, coupled with a “root-cause analysis” of the source of trouble calls, we were able to implement a program that reduced internal non-productive work while preserving low unit prices. Total operating costs were reduced by 40%, and IT staff time was reduced by almost 50% within 18 months.
INTERNATIONAL AUCTION HOUSE
Situation: After extensive negotiations for a potential relocation space within midtown Manhattan, an international auction house became concerned about the budgetary impact of the projected rent and the 20-year lease term.
Result: By assuming responsibility for all landlord negotiations, base rent was reduced by more than $1 million annually, and the lease term was reduced to five years, while preserving the auction house’s option to renew for additional periods.
Situation: A major international law firm with more than 1,000 attorneys, Callydus professionals looked at global expenses for IT hardware, office equipment, office supplies and telecom.
Result: Annual savings of more than $6 million implemented in just 12 months.
Situation: A $13 billion diversified company with seven business units implemented an initiative to reduce overhead by more than $100 million.
Result: Through a rigorous analysis of workflow, job functions, process improvement and technology, Callydus professionals saved this client more than $10 million in the first year of implementation.
INTEGRATED HEALTHCARE SYSTEM
Situation: After several years of acquisitions and divestitures, an integrated healthcare system was faced with duplication throughout its management and supply chain.
Result: Reduced operating costs by 20% within one year, largely through decreased costs of goods sold, process redesign and logistical improvements. An internal performance improvement team was created to continue these efforts.
FINANCIAL SERVICES COMPANY
Situation: An extremely successful processor and printer of financial data with annual revenues of $2 billion had enormous expenditures for paper, printing, supplies and international delivery.
Result: Savings of 12% to 30% in major expense categories, resulting in savings of $7.5 million per year.
UPSTREAM OIL COMPANY
Situation: This client’s annual expenditures on its decentralized purchasing of highly specialized equipment and services, needed for particular drilling fields, was driving operating costs to unacceptable levels.
Result: Through a careful analysis of the company’s usage and demand patterns, it was determined that high services costs were linked to failures of high priced drilling equipment that had previously been viewed as a cost of doing business. By implementing a new purchasing program that rewarded suppliers based upon the successful outcome of the drilling process, overall costs were reduced by 10%.
Situation: The fragrance subsidiary of a $15+ billion firm, with four distribution/warehouse centers, had determined that it needed an additional 90,000 sq. ft. facility to accommodate the launch and anticipated sales of a new product line.
Result: A review of the client’s needs determined that its existing 500,000 sq. ft. of warehouse/distribution space was outmoded, inefficient, and badly located. Rather than simply add another facility, we consolidated their entire warehouse/distribution operation into a single new, better located, and modern facility of 240,000 sq. ft. The real estate savings alone totaled $18 million, in addition to the continuing savings on operating, administrative, and transportation expenses.
Situation: The new Board of Directors wanted to turn around a distressed, recently acquired $1 billion catalogue retailer, in part by cutting non-salary costs.
Result: Enormous savings in areas such as printing, paper and benefits, with total savings of $5 million annually.