Partnering with a global nuclear medicine company to support the rationalisation and opportunity assessment of delivery cost reductions and better buying platforms.
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- With the current investors targeting an exit in 2025 and the client capitalising on its market position, the organisation had grown quickly to €750m in annual revenue and an EBITDA of approximately 30%.
- There had previously been little focus on cost management and third-party expenditure, with each of the three business units conducting their own buying, budgets typically rolling over year on year and the exponential growth across the group adding considerable cost.
- The Leadership Team required support to identify sustainable internal and external savings opportunities. The 4C team was tasked to conduct a company-wide eight-week diagnostic with the aim of identifying savings to offset the base business inflation in their year-year plan.
- The 4C team partnered with the client’s Leadership team across each group to review the current cost structure and understand any opportunities for optimisation.
- Our approach consisted of three key activities over the course of eight weeks including current state analysis, opportunity assessment and opportunity prioritisation.
- At the start, we conducted rigorous data analysis to understand the current external spend and internal spend on personnel-related expenses, including understanding processes and benchmarking spend against industry standards.
- We undertook spend rationalisation and opportunity assessment of delivery cost reductions and better buying platforms to reduce external costs and optimise ways of working.
- Concurrently we validated opportunities through discussions with key stakeholders, further data analysis and prioritised them based on opportunity size and business need.
- We identified over €40m of cost optimisation benefits, reducing total spend by up to 11% through the implementation of strategic sourcing, operational excellence, workforce optimisation and investment in platforms to optimise ways of working, leading to improved practices and greater wellbeing of patients.
- The client benefited from an improved engagement and empowerment of the leadership teams across the business units to optimise their individual and group costs with the opportunities presented.
- The 4C team were invited to undertake the implementation phase of the cost optimisation strategy.