Recyprocity is a multifaceted consultancy team.
We focus in Sustainability & ESG, but we also know our basics from Legal & Finance. We believe that the core of any business has to be cost-efficient and optimized in order for it to get durable and profitable.
The way you are employing the three capitals (Natural, Social, Financial) is key to boosting your profits. A good management of these resources can lower your costs and improve your activity as a result.
The first step of our process is to lead a review of the corporate P&L to (1) get an estimate of how much cost savings we can perform, and (2) to collect the necessary data we will need to carry out the sustainability audit as a next phase.
So, we meet with the client and spend time at their facility, understanding how they operate their business on a daily basis. Then we assess their needs, and review existing contracts – both internal contracts & external contracts with suppliers, that we compare to our standards and benchmarks.
This is a major part of the value we offer. Most of the time, companies are so busy with the routine job that they can’t plan their growth and don’t review all their engagements. This means they usually pick up one of the quickest proposals to implement, or that they can’t review all existing contracts.
We come with a blank slate and a clean desk, and double check whether the services you’re paying for suit your needs.
And we do go into detail. For example, we reduced the printing costs of a client by up to 30%.
We changed the printing machine from a leased one to a one-time-buy warranted printing machine because the leased one would add up to buying the equivalent of 2 printing machines every 6 years. Overall, we reduced the IT services costs for up to 30 k€.
We spotted that the mainstream accountant firm overcharged their accounting services up to 10 k€ with an additional 5 k€ in social services, and used IT software that was obsolete.
We suggested another accountant firm, saved up to 15 k€ and gained the use of a modern interface.
Regarding the financial efficiency of the same client, we focused heavily on their insurance contracts. Overall, insurance contracts amounted to the equivalent of 2% of the client’s annual revenue. We reduced them to 1,2% of the revenue – a 100k€ saving.
Beyond the mere economic gains, this represents an increase in the quality of the contracts, more coverage, and the negotiation of lower insurance deductibles.
We also advise on financial debt and credit: for commercial vehicles Recyprocity recommended to substitute leasing with mid-term credit. As a result, a huge gap in interest rate: 0,2% net instead of 6%+, a major game changer.
Finally, regarding internal contracts, we assess whether the workload is well divided between managerial positions, whether objectives are doable, whether wages meet the expectations of the staff.
Now that we reviewed the core business of our client and freed up significant amount of money, we can address the second stream of our consultancy work: Sustainability.
Keep reading our posts here to stay up to date with the follow up of this case!