Gustavo Cudell: from scepticism to enthusiasm - Expense Reduction Analysts
What makes the CEO of a company well implemented in the market, which never resorted to cost reduction consultant services, appoint Expense Reduction Analysts?
The first contact took place during a conference organised by the Portuguese-German Chamber of Commerce and Industry that Gustavo Cudell usually attends. He listened with interest to the presentation made by Expense Reduction Analysts but remained sceptical. “I have no issues with the methodology, but I know that our company is a business with very structured non-strategic costs”.
At the end of the presentation, Carlos Nunes, from Expense Reduction Analysts in Portugal, challenged him and Gustavo Cudell, as a true businessman, took it up. Opportunity: To achieve savings. In return: Keep half of the savings achieved.
Four cost categories were analysed in-depth by the consultants from Expense Reduction Analysts: Insurance, fuel, transport of goods and telecommunications – landline and data transfer – in order to get the best offer. The overall savings achieved averaged 17.01%.
Gustao Cudell believes that the savings of 32.61% achieved in the transport category, not the largest, were the most surprising “we had already negotiated the contract and I did not think we could save that much.” This was the only category for which Expense Reduction Analysts changed suppliers. In all business dealings, Cudell stresses “Expense Reduction Analysts’ friendliness and their attitude, always appropriate and responsible”.
A detailed analysis enabled us to find a consistent mistake in invoicing, “coming from a supplier charging a rate of insurance on transportation that had never been agreed on”.
When asked about the importance of the savings achieved for the company, Gustavo Cudell remains practical: “Expense Reduction Analysts has provided us with a 4% increase in our operating profit. This is significant in itself, but as we think, even more so in the current economic climate. “
Out of the 221,000 euros spent annually in all four categories, Expense Reduction Analysts saved 38,000 euros.
In his analysis, Gustavo Cudell considers the company’s cost reduction, higher than expected, and highlights the methodology, transparency, monitoring and result-oriented actions.
“I am convinced that for companies where non-strategic costs are not as well controlled, the savings achieved could be quadrupled.”
Founded in 1954, Gustavo Cudell is a company located in Porto, specialised in two business areas, Engineering and Services and Outdoor Solutions.
The first area relates to the provision of engineering services and sales of components for the sectors of oil-hydraulic and industrial automation. The second commercialises solutions for outdoor areas, including irrigation systems, garden lighting, pumps and ponds for garden, products for swimming pool and components for fluid conduction.
Currently the company employs 75 people, own 10 stores country-wide and achieve a turnover of 11 million euros.
Client Manager Summary
Carlos Nunes é Economista pela Faculdade de Economia do Porto, e tem um Master em Finanças e uma Post-Graduação em Gestão Avançada (AMP) pelo Insead – França.
Tem mais de 25 anos de experiência de Gestor, tendo nomeadamente passado pela Caixa Geral de Depósitos pela Sonae e pelo Banco Pastor. Como gestor desenvolveu competências específicas no lançamento de novas empresas tendo, como Director-Geral constituido e lançado em Portugal a primeira SFAC - empresa de crédito ao Consumo (Sonae - 1991) e anos mais tarde o primeiro Estabelecimento Financeiro de Crédito – IFIC (Banco Pastor 1997). Foi Administrador de várias empresas do Grupo Sonae e do Grupo Pastor, nomeadamente de empresas financeiras sob supervisão do Banco de Portugal e do Banco de Espanha.
Como Administrador executivo das referidas empresas, responsável perante os accionistas pela conta de Resultados, desenvolveu grande competência na racionalização dos custos, como alavanca da rentabilidade.
Summary of Savings
|2||Transport of Goods||32%|