Porin Teollisuusputki Oy

Porin Teollisuusputki put indirect purchases out to tender

Competitiveness through cost savings

Porin Teollisuusputki Oy, a specialist in industrial projects and pipe installations, put indirect purchases from various cost groups out to tender with the help of ERA experts. The result was cost savings that improved competitiveness and new operating models for indirect procurement.

The cooperation between Porin Teollisuusputki and ERA began a few years ago. At the beginning of the cooperation, the goal was to achieve significant cost savings and to develop Porin Teollisuusputki's own procurement expertise in challenging cost categories.

"As our operations have grown rapidly in recent years, there has also been pressure to adapt our procurement to suit our new scale of operations and make it more efficient. We wanted to develop a new operating process for indirect procurement with the help of ERA's experts. Their professional approach impressed us and gave us a good foundation for further development, says Development Manager Aleksi Olander from Porin Teollisuusputki.

Focus on various project costs

Numerous cost categories were examined during the collaboration. ERA's experts reviewed travel and accommodation costs, machine rental and small production supplies costs, insurance costs and industrial gas procurement costs. In total, cost savings amounted to more than half a million euros during the review period.

"We trust ERA's experts' experience in these cost categories and focus our own expertise on our core business. The savings achieved through good goods and service supplier agreements are long-term; for example, we have gained protection against inflation," says Olander.

Savings mean not only lower costs, but also greater competitiveness

Most of Pori Teollisuusputki's customer projects are carried out at the end customer's premises, such as production facilities. Installers travel and stay in different locations depending on the customer project, and the work requires various tools and small accessories. Managing these indirect costs is also important for the financial efficiency of many projects.

"In the operations of an industrial company like ours, cost savings do not only mean lower expenses, but also greater competitiveness. The market is competitive, and our own efficiency in indirect procurement has a direct impact on everything from our bidding calculations," says Olander.

"Working with ERA's experts was easy, and their experience with the cost categories we looked at helped us develop our own operations, for example, to be more systematic in competitive bidding, while also achieving significant savings," Olander concludes.