What exactly do you do and how many partners do you currently have in Belgium?
Johan Van Delm; managing partner and fleet and mobility specialist at ERA: 'We help companies save costs in a wide range of areas. In concrete terms; we try to make them smarter by combining our broader knowledge within a specific field with the highly specific knowledge that already exists within those companies. We never claim to know better; but we try to apply our expertise to the specific situation and approach within a particular company. To this end; we call on a network of 19 partners in our country; each with their own expertise and knowledge; which is made available to domestic and foreign customers.'
Philip Declat; partner and logistics specialist at ERA: 'We give customers insight into their costs by objectifying data and then offer them various alternative options with the aim of creating value. A company's primary focus is on its own core business. We have the time and knowledge to look at non-strategic processes and identify potential savings or better options. On average; we remain with a client for around two and a half years.
You are part of an international group. How much added value does this international expertise bring to Belgian clients?Johan Van Delm: 'We now work with around 750 partners worldwide. The focus is on the UK and mainland Europe; but we also have offices in the US; Asia and Australia. We have a broad local network; but we also leverage our global knowledge: if; for example; we have partners in Germany with specialised medical expertise; our customers in the healthcare sector can also benefit from this. In addition; we can also rely on so-called practice groups for each industry; with specialists who have in-depth knowledge of a particular sector and the specific opportunities for cost reduction in that sector.'
Why would a company that knows its own sector and business inside out call on external specialists to achieve the best possible cost reduction?
Christophe De Vleeschouwer; senior partner and energy specialist at ERA: 'My field is perhaps a good illustration of this. Most non-energy-intensive companies do not have their own energy specialist in-house; because it is not a strategic activity for them. Based on my expertise in the energy sector; I can therefore come up with cost-saving ideas and negotiate new contracts for them. Initially; we work on a no-cure-no-pay basis; but we often see this being converted into a long-term service contract afterwards. This is because companies want to continue to call on our expertise in the longer term. We therefore strive for long-term partnerships; in which we always work very closely with internal stakeholders. Customers expect us to deliver sustainable savings; and aspects relating to the 'green deal' have also become paramount.
Which companies do you mainly target?
Philip Declat: 'In terms of turnover; we usually deal with companies with a local turnover of 30 to 300 million euros. On average; indirect costs amount to around ten per cent of that turnover; and because we work on a no cure; no pay basis; we obviously need a certain minimum scale. Really large companies usually employ their own people to analyze and reduce these indirect costs; but we can often still offer them added value through our expertise in certain segments. In fact; once customers have experienced our approach; they often ask us to start a project in certain very specific areas that are strategic.
'We have the time and knowledge to look at non-strategic processes and identify potential savings.'
PHILIP DECLAT; PARTNER AND LOGISTICS SPECIALIST AT ERA
Johan Van Delm: ‘Sometimes we come in after a broad pre-audit in which we examine the general cost structure; but just as often companies ask us for our very specific expertise; for example in payment systems; mobility; insurance; the logistics chain; you name it. The low-hanging fruit has almost always already been picked.’
You don't start charging from the first meeting. How does the no-cure-no-pay approach work in practice?
Johan Van Delm: 'We decide whether or not to take on a project; but the client is guaranteed that we will only invoice for our services if we actually succeed in reducing costs. We document this very objectively in advance; of course. Occasionally; a client will set really tough targets; but usually; after detailed research; we try to put various options on the table that we can quantify. It is then up to the client to work with us to assess the impact and scope of these options and make a decision.’
