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21 January 2012 | Naouel Zenaidi
Women’s magazine, The Lady, has achieved an average of 16 per cent of savings after
outsourcing part of its cost and purchase management to Auditel.
A three-year contract was signed
between the two parties on a no-win, no-fee basis in November. It first looked
to address three areas of spend – office stationery, merchant credit cards and
electricity, for which expenditure was more than £50,000. The arrangement was
that Auditel would only get paid if it achieved certain savings targets on
these categories, which it did.
in 1885, The Lady is England's
longest-running weekly magazine for women. Its classified adverts include job
listings for housekeepers, butlers and nannies. Publisher and chief executive Ben Budworth, who took over in 2008,
wanted to modernise the business and revitalise the brand. “The magazine was
out of touch and out of place, and archaic working practices were still being
employed,” he said. He wanted to free up time and money without compromising on
By reducing the supply base and
talking with existing suppliers to renegotiate contracts that had not been
reviewed in years, Auditel delivered an average of 16 per cent savings across
the three spend areas. The process also helped achieve non-financial
efficiencies, such as the reduction of time associated with multiple deliveries
and invoice processing.
Budworth said he welcomed Auditel’s expertise and approach to finding suppliers
that best suited the magazine’s needs rather than simply switching to the
Auditel consultant Colin Simmons said:
“Our process is to look at purchasing on an ongoing basis but it’s a case of
how often you want to repeat the tendering exercise. Purchasing loyalty isn’t
just about price and trying to ‘beat up’ a supplier doesn’t necessarily benefit
you in the long term. While an incumbent supplier might reduce their price, if
they see this as a yearly exercise, they might walk away.”
The two are now considering other
areas of spend Auditel may be able to help with, such as telecoms.