How consulting helped the company reduce expenses by 20%

The history of a hypothetical company shows that well-structured consulting can provide significant savings and new opportunities.

Initial Data

The company “AlphaTech” was engaged in supplying equipment for small businesses. Staff — 60 people, turnover — about 5 million euros per year. The main problem: high fixed costs and low profitability.

Problem

• Duplication of functions in departments.

• Ineffective purchasing without price analysis.

• Lack of a transparent cost control system.

Expenses exceeded 4 million euros every year, while net profit fell below 6%.

Solution: Consulting

The company invited external experts. The action plan included:

1. Process Audit — “bottlenecks” in accounting and purchasing were identified.

2. Negotiations with Suppliers — price reduction of 12% through collective purchasing.

3. Implementation of CRM and BI Systems — control of sales and expenses in real-time.

4. Staff Optimization — redistribution of tasks, reduction of duplicating positions.

Results

After 12 months:

• Expenses decreased by 20% (from 4 million to 3.2 million euros).

• Net profit rose to 12%.

• Order processing times were reduced by 30%.

Client Reaction

Clients noted the improvement in service: fewer delays, faster feedback. This became an additional bonus to financial optimization.

Consulting works not only at the corporate level. Even medium-sized companies can achieve significant effects. The main thing is readiness for change and working with numbers.