Uniform Expenses: ERA Review Process Outlines Savings Opportunities

The Challenge

For any organization to maintain its position as a profitable industry leader, an analysis of suppliers and purchasing practices is crucial. Suddenlink Communications, a $2 billion multi-service operator and the seventh largest cable broadband company in the country, turned to ERA for advice on how to unlock extra cash flow from their supplier base. ERA’s approach is to zero in on a company’s non-core expenses to expedite bottom-line savings, allowing the organization to focus on managing core expenses. For Suddenlink, uniforms were identified as a particular area of concern.

The Solution
ERA’s review revealed savings opportunities in the garment expense category. Suddenlink was using 65 separate suppliers for uniform purchasing and services. ERA consultants provided market intelligence on garment brands and manufacturers to help Suddenlink make an informed decision moving forward in the vendor selection process.

The Results

ERA exercised great care in delivering a solution to Suddenlink’s supplier challenges to ease the transition to new providers. A list of 65 suppliers was narrowed to only two — one new and one incumbent, resulting in an annual savings of 22 percent. ERA also suggested best practices in vendor management, examined Suddenlink’s product purchases to help them define and reinforce their brand throughout the consolidation process, and monitored expenditures for leakage to take advantage of volume savings.

 

“We did not have the resources, expertise or time to deliver the savings and understanding of best practices that ERA could provide. Thanks to ERA, we found sustainable and tangible savings without having to invest in large corporate functions. They are a true partner and trusted advisor.”

- Jim Fox
  SVP and Chief Accounting Officer, Suddenlink

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