This year; ERA Group; a global specialist in cost optimisation; celebrates its 30th anniversary. The company adopts a no cure no pay approach that is quite unique in the consulting world; helping clients from a wide range of sectors to reduce their costs; mainly in non-strategic areas.
What exactly do you do and how many partners do you currently have in Belgium?
Johan Van Delm; Managing Partner and Fleet and Mobility Specialist at ERA: "We help companies in a wide range of sectors to reduce their costs. In concrete terms; we try to make them smarter by combining our extensive knowledge of a particular field with the expertise available within the company. We never claim to be smarter than them. That said; we simply try to apply our expertise to our client's specific situation and approach. That is why; in Belgium; we call on a network of 19 partners; each with their own expertise and knowledge; and we make this available to Belgian and foreign clients.”
Philip Declat; Partner and Logistics Specialist at ERA: "We analyze our clients' costs by objectively assessing their data; then we propose alternative solutions with one goal in mind: to create value. Companies focus primarily on their core business. We have the time and knowledge to look at non-strategic processes and identify opportunities to reduce costs or opt for cheaper alternatives. We support our clients for an average of two and a half years.”
You are part of an international group. What added value does this international expertise bring to your Belgian clients?
Johan Van Delm: “We work with 750 partners worldwide. Although our center of gravity is in the United Kingdom and on the European continent; we also have offices in the United States; Asia and Australia. We rely on both a vast network of local experts and our global presence. For example; some of our partners in Germany have specific expertise in the medical field; which we can pass on to our other clients in the healthcare sector. In addition; we can draw on what we call 'practice groups' for each industry; with specialists who have in-depth knowledge of a particular sector and the opportunities for achieving significant cost reductions within it.
Why would a company that knows its sector and its business inside out call on an external specialist to optimise its cost reduction?
Christophe De Vleeschouwer; Senior Partner and Energy Specialist at ERA: "Energy is probably one of the best examples. Most energy-efficient companies do not have an in-house specialist because energy is not a strategic part of their business. Thanks to our expertise; I can still offer them ideas for reducing their energy bills and negotiating new contracts. Although we initially work on a no cure no pay basis; this usually gives way to a long-term service contract; as companies want to continue to benefit from our expertise. We therefore seek long-term partnerships in which we always work very closely with internal decision-makers. Clients expect us to deliver recurring savings; especially at a time when concerns about the Green Deal have become a major priority.
Which companies do you mainly target?
Philip Declat: “These are mainly companies with local turnover of between €30 million and €300 million. Indirect costs average around 10% of this turnover; and as we work on a no cure no pay basis; we obviously need a minimum size. Very large companies usually have their own experts to analyze and reduce these indirect costs; although we often add value thanks to our expertise in specific segments. Clients who have tried our approach frequently ask us to then start a project in very specific strategic areas.”
Johan Van Delm: “Sometimes we intervene after an extensive pre-audit during which we scrutinise the overall cost structure. But it's true that companies also come to us for our very specific expertise; for example in payment systems; mobility; insurance; supply chain; etc. In these cases; the low-hanging fruit has already been picked; but there is still work to be done."
You don't start charging from the moment of the first discussion. How does your no cure no pay approach work in practice?
Johan Van Delm: "We decide whether or not to accept a project; and the client has the guarantee that we will only charge for our services if we actually succeed in reducing their costs. Of course; we document this very objectively in advance. Sometimes a client wants to set very strict targets; but in that case; after a detailed analysis; we try to propose several options on which we can then place an order of magnitude. It is then up to the client to study the impact and scope of these solutions with us and make a decision."
