Domestic

Case Studies

Grampian Housing Association save thousands on utility costs

Client:

Established in 1975, Grampian Housing Association is a fast growing and dynamic housing association based in the North East of Scotland. Through direct development and stock transfer the association now provides services to over 3,000 households across Aberdeen, Aberdeenshire and Moray.

Situation:

With over 250 supplies, managing all utility supplies was a costly and time consuming task for Grampian.

In order to help reduce the administrative burden on Grampian and to reduce energy costs, Business Cost Consultants (BCC) was appointed to carry out a full audit of all utility costs and identify savings, as well as take over the management of utilities.

Strategy:

The audit identified several areas where costs could be reduced. BCC managed the whole procurement process from data collection through to a formal tender process and a detailed procurement report.

The audit also identified areas where services could be consolidated in order to reduce the associated administration burden.

Results:

Following the audit, utility costs were reduced by 16% which will save the association over £33,000 per annum. Furthermore, the number of invoices and payments being processed has been so far reduced by around 90%.

BCC’s team will continue to work with Grampian to provide a comprehensive utility management service, advise on procurement strategy and identify further savings.

“In a short space of time we have achieved significant efficiency savings as a result of BCC taking over the management of our considerable number of utility supplies. We have experienced a marked reduction in the volume of invoices and other correspondence received relating to utility supplies, reducing the amount of processing required. In the past a considerable amount of time was spent on the phone dealing with utility suppliers, whereas now we have a single point of contact at BCC resulting in a significant time saving. In addition to the efficiency savings, BCC have also secured a significant level of cost saving through their procurement service, estimated to be 16% in year 1. Grampian Housing Association have benefited from the expertise and insight of BCC and we would not hesitate to recommend them.”

Chris Good, Senior Finance Manager

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