Savings have Blossomed at Cherry Pipes!!!!
The Cherry Pipes Group of companies is a family owned business that has been trading since 1969 from their Head Quarters and flagship based in Loughgall. They specialise in the manufacture and distribution of plastic drainage systems to the Agricultural, Civil Engineering and Construction Industries throughout the United Kingdom and Ireland. The Company has grown and expanded rapidly in that time with two different sites which operate a mixed plastic bottle sorting plant which is based near Crumlin Co. Antrim and a Polyolefin Wash & Compounding facility which is based in Lurgan, Co. Armagh.
The company was established by Mr David Cherry, he is a well-known and highly respected entrepreneur within the local business community, David had the vision to see the niche in the marketplace, his passion for integrity in business and quality products has built him and his company a reputation in the pipe market for quality and service.
The multiple award winning company appointed Specialist Cost Auditors (SCA) to improve their cost, purchase and supplier management. Cherry Pipes engaged John McGowan the Business Development Director and his team of procurement specialists to identify areas of their business where effective cost management could be implemented. Following agreement, areas for review included electricity, payroll, energy efficiency and telephones.
Third party expert David O’Connor in Employment Services was introduced to implement savings created through a business concept in reducing payroll costs through a rebate system where a company can save up to 3% of its annual gross wage, and doesn’t involve reducing any employees weekly or monthly wage structure or make any of them redundant. The beauty of payroll is that it provides vital money every month to any business particularly to those companies were cash flow is always fairly tight and hard to come by. David Cherry commented “ I was particularly intrigued with this payroll concept, once everything was explained to me in greater detail and having carried out our own due diligence and was more than happy to engage particularly after learning of the savings that can be achieved and the many recognised household names that are using this service both locally and Nationally”.
To review Cherry Pipes spend on electricity, John called in third party expert Ian Anderson particularly because he specialises in dealing with clients where the spend in is excess of £500,000 annually. Ian prepared a very detailed tender and submitted it to all the local providers in the marketplace, the end result of the whole review was an impressive saving of £50,000 within this area of expenditure. Ian Anderson explains “ when reviewing any clients energy spend it is very important to have a clear picture of the benchmark line actually so that all the suppliers involved the process understand what they are tendering against and to prove actual savings to the client”.
Ian also reviewed energy conservation and telephones for the Cherry Pipes Group and implemented significant savings in both areas of expenditure. Whilst improving the bottom line was the primary aim of the project, a significant benefit of engaging Specialist Cost Auditors was the simplification of the supply chain. This process was definitely of real value to Cherry Pipes as it enabled them to be more efficient and make better use of their time.
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