Luxury furniture manufacturer Kler reduces costs on leather scraps and office materials

Kler SA is the leading luxury home furniture manufacturer and an undisputable leader in the luxury furniture market in Poland, always on the forefront of furniture fashion trends. Kler does not only furniture, but whole interior design products - starting with upholstered furniture, through chests of drawers, cupboards, carpets, blankets, cushions, bedspreads, bedding, to rich collections of lamps and ceramic decoration items.

Senior Expense Reduction Analysts Partner Łukasz Polak has analyzed Kler‘s expenses, paying special attention to the costs of office materials and leather scraps sales.

„Cooperating with Expense Reduction Analysts gave us a chance to use expert knowledge without taking any risk. We think very highly of their expertise, flexibility and ability to understand our needs“ - says Tadeusz Respondek, deputy CEO of Kler SA.

The yearly expenses for office materials at Kler reached 340 thousand PLN while sales of leather scraps were close to 160 thousand PLN. Since Kler pays special attention to quality Jerzy Kusina, office material expert at Expense Reduction Analysts, mainly focused on quality rather than on cost reduction. Nonetheless, the expenses for office materials could be reduced by optimizing the purchasing process and by coming to a new agreement with the incumbent supplier.

The unusual leather cuttings project was based on the principle of getting higher sales prices for the cuttings without significant cost increase for preparing the material. This project generated significant increase in sales due to cooperations with selected suppliers that guaranteed a stable purchase level and attractive prices.
Expense Reduction Analysts has managed to get significant cost reductions in office materials without changing the incumbent supplier. In average Kler reduced expenses by 11.000 PLN or 17 per cent. At leather cuttings Kler increased sales by 77 percent or 84.000 PLN.