To find out how to access these savings contact William Davison on 0115 9691001 |
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| To calculate potential saving more accurately, by changing the assumptions in the example below please contact William Davison at LeenTech |
| Area of savings |
% Saving |
Annual Data |
|
Savings per year |
|
|
Turnover |
£20,000,000 |
|
| Tighter cost control (e.g. stop sales giving warranty) |
1% |
Total warranty claimed |
£600,000 |
£6,000 |
| Faster rectification of design, production and supplier issues |
5% |
Total warranty claims paid out |
£500,000 |
£25,000 |
| Warranty/Sales/QR/ Management productivity gains |
25% |
Staff cost estimate |
£50,000 |
£12,500 |
| Reduced working capital, few disputes = faster payments |
5% |
Working capital estimate of outstanding debt |
£3,000,000 |
£10,500 |
| LeenRecovery improved cost recovery from suppliers |
10% |
Supplier Recovery |
£260,000 |
£26,000 |
|
|
|
|
|
|
|
Total Savings |
|
£80,000 |
|
|
|
|
|
| Increase sales due improve customer satisfaction |
2.0% |
Increase in sales |
£400,000 |
£60,000 |
|
|
|
|
|
|
Total saving and profit from increased sales |
£140,000 |
|
|
|
|
|
| Assumptions |
|
|
|
|
| Servicing cost of outstanding debt |
|
|
7.00% |
|
| Outstanding debt as % of turnover |
|
|
15.00% |
|
| Profit margin on increased sales |
|
|
15.00% |
|
| Total warranty claimed as % of Turnover |
|
|
3.00% |
|
| Total warranty claims paid out |
|
|
2.50% |
|
| Staff cost estimate for time spent on Warranty and QR issues as % of turnover |
0.25% |
|
| Estimated recovery from suppliers as percentage of turnover, (this will vary greater, but is for illustration purposes). |
1.30% |
|
| Saving start 6 months after start of implementation. Allowing time for training, testing, piloting, rollout, management responses to realise savings |
