An educational institute achieved $2.25 million in annual savings!

CASE SUMMARY

With the impact of international student revenue across

Australia and uncertainties in Government funding, the

educational sector is increasingly seeking ways to reduce costs

to sustain operations.

A swift and comprehensive review of expenditure management

was needed in response to a board directive from one of

Victoria's premier public vocational education and training

providers to enhance financial self-sufficiency.

Recognising the lack of internal capacity and expertise for such

a task, the newly appointed CFO enlisted Tim Woods and a

team of ERA Group analysts to review various expense

categories thoroughly.

After this review, ERA Group provided an average saving per

category of 42% while simultaneously enhancing the quality and

internal processes, ensuring that the board directive was being

effectively fulfilled.

As well as identifying $2.25 million in annual savings across

nine initial categories, ERA identified and introduced improved

processes, technological systems, supplier terms and levels of

quality.

ERA also managed the operational transitions to the new and

renegotiated incumbent vendors to maintain business

continuity. To ensure the savings were delivered as proposed,

ERA monitored supplies for at least 24 months.

ERA Group provided far more value than just dollar savings.

Whilst these were significant, the main benefit was providing

the CFO and Board with the comfort that their costs were now

under control and better understood.