Case Study
Patrick Corporation Saves 24% On Cleaning Services
ERA able to add $426,000 annually to company’s bottom line
Working with ERA gains Patrick Corporation a 24% savings on their cleaning bill
The Expense Reduction Analysts (ERA) Challenge
The client is Patrick Corporation a billion dollar Freight Logistics Company specialising in the loading and unloading of ships and the efficient land based collection, distribution and storage of cargo. With a workforce exceeding 5,500, they are one of Australia’s largest and most successful businesses.
Patrick’s has a multi million dollar annual cleaning bill that was spread across 120 sites and shared among 30 service providers. Each site has unique cleaning requirements.
Beyond the obvious cost factors there were also implementation and quality issues to address due to the multi site nature of the business. Service levels must be kept high and in line with past accepted benchmarks.
Faced with such an enormous task, it made sense for Patrick’s to outsource the project.
The Expense Reduction Analysts Solution
ERA specialists analysed Patrick’s cleaning expenses and recommended the company move from using thirty different cleaning organisations to six, a culling that achieved economies of scale.
Patrick slashed its cleaning bill by 24%, adding $426,000 annually to the company’s bottom line.
The reduction in costs was made without a corresponding cut in service quality – an important consideration given the sensitive nature of cleaning.
Project Information
- Category: Contract Cleaning
- Industry: Freight
- Savings: 24%
“Cutting cost doesn’t have to mean cutting quality. Some of Patrick’s sites were paying high margins relative to market rate and in other cases sites were over-serviced.”
Richard Jones
Patrick’s National Procurement Manager