An educational institute achieved $2.25 million in annual savings!

CASE SUMMARY

With the impact of international student revenue across
Australia and uncertainties in Government funding, the
educational sector is increasingly seeking ways to reduce costs
to sustain operations.

A swift and comprehensive review of expenditure management
was needed in response to a board directive from one of
Victoria’s premier public vocational education and training
providers to enhance financial self-sufficiency.

Recognising the lack of internal capacity and expertise for such
a task, the newly appointed CFO enlisted Tim Woods and a
team of ERA Group analysts to review various expense
categories thoroughly.

After this review, ERA Group provided an average saving per
category of 42% while simultaneously enhancing the quality and
internal processes, ensuring that the board directive was being
effectively fulfilled.

As well as identifying $2.25 million in annual savings across
nine initial categories, ERA identified and introduced improved
processes, technological systems, supplier terms and levels of
quality.

ERA also managed the operational transitions to the new and
renegotiated incumbent vendors to maintain business
continuity. To ensure the savings were delivered as proposed,
ERA monitored supplies for at least 24 months.

ERA Group provided far more value than just dollar savings.
Whilst these were significant, the main benefit was providing
the CFO and Board with the comfort that their costs were now
under control and better understood.