Successes and Otherwise…

authors

Grant Morrow

Principal Consultant

No items found.

Content

Reflections on a 7-Year Engagement

I’m often asked what “success” looks like in my work. It starts with savings; but it’s rarely just about the dollars. For some clients; it’s purely financial—percentages or hard figures. For others; it’s about supply consolidation; gaining deeper business insights; confidence in their decisions; or a mix of all these factors.

In this edition of Costedge; I wanted to start sharing what success; or otherwise; looks like for some of the clients and projects I work on; and some of the learnings along the way.

Case Study: Private Boarding School; Perth

I’ve been working with this client—a private boarding school in Perth—for over seven years; it was one of my very first clients when I established the business with ERA Group. The original engagement focused on one key category: catering services for their boarding house. Right from the outset; the client had three very clear objectives:

Board accountability – He needed to be able to confidently answer the board’s recurring question: “Are we getting the best deal?”
Greater oversight – He wanted improved visibility over the performance and operations of the external catering provider.
Savings – While undefined at the start; savings were still a key goal.

With a lean finance team and limited internal resources and capability in this category; he turned to ERA Group to help achieve these outcomes.

Following the ERA Methodology

We kicked off the project using ERA’s 4 step methodology:

Analysis– We compiled 12 months of invoice data and presented it in a Discovery Report.
RFP– With the client we developed a detailed Request for Proposal (RFP) and invited three suppliers to participate.
Selection & Implementation– The incumbent caterer was selected from 3 suppliers invite to respond to an RFP; offering a 14% savings—low six figures in dollar terms plus other benefits.
Monitoring– With no need for a full implementation; we quickly moved into the monitoring phase.

What was most interesting here was that the incumbent; facing the potential loss of the contract; delivered significant savings plus other benefits not previously forthcoming; and renewed engagement—demonstrating the power of market testing; even when change isn’t the final outcome.

The Monitoring Phase: A Platform for Continued Value

The monitoring process proved essential. With the caterer’s cooperation; we introduced meaningful metrics and oversight:

Actual meal counts
Regular; detailed stock-on-hand (SOH)
Regular food wastage reports
Monthly supplier meetings
Quarterly performance reports with discussion points and insights

This allowed both the school and the caterer to fine-tune operations and identify additional incremental savings. We also introduced new benefits that weren’t part of the original brief; including annual scholarships and capital works support—value the client hadn’t anticipated or had previously.

So—Was It a Success?

Yes…

Here’s how the project stacked up against the original objectives:

Competitive pricing? ✔ Yes. Through the competitive tender; we were able to benchmarked offers. With a revised offer the incumbent proved to be the most competitive; and the client can now confidently address any board scrutiny.
Improved oversight? ✔ Yes. Reporting; transparency; and supplier dialogue have all improved significantly and been beneficial.
Savings? ✔ Yes. 14% savings delivered; with additional incremental savings found over time.

In the words of the client: “We’ve achieved benefits we wouldn’t have been able to achieve without ERAs help.”

Now entering the third contract renewal period and eighth year of monitoring; this engagement stands as a great example of how sustained collaboration and regular review can deliver real; long-term value.

The learnings from this project…

It is surprising what long term suppliers can offer when approached and the relationship is formalised. I see this time and time again. You think you know a supplier you’ve been dealing with for a long period…
The power of monitoring: In this case monitoring was able to identify some key areas to address; as food waste.
How working with a supplier can lead to additional benefits and help overcome issues when the arise.
The introduction and power of benchmarking to help understand the business better.

Next edition I will focus on another school with a completely different set of objectives; same category.