This regional bank manages more than $17 billion in assets with 115 locations in three southwestern states.
With increased competition for financial services, bankers know their institutions must focus on efficiency and cost reduction to stay viable. Staying on top of utility costs was a great place to start. The bank spent $254,000 on annual waste removal costs alone.
With so many locations across broad geography, Cost Control Associates expected there was a good chance they could produce significant savings opportunities for the bank. It would cost nothing to take a thorough look, because Cost Control performs its analysis work on a contingency basis: The client incurs no costs unless refunds and savings are produced.
Using its Waste Removal Cost Recovery and ReductionTM program, Cost Control Associates performed a careful examination of invoices looking for errors, overcharges and potential rate opportunities. The analysis team uses proprietary software and a unique “team analysis” approach to:
- Identify improved efficiencies in waste-hauling procedures,
- Eliminate unnecessary services and
- Adjust recycling programs to reduce waste streams.
A careful look at container types/sizes, schedules and hauler practices often adds to the savings.
“A close examination of waste removal rates, schedules and other efficiencies saved us $80,000 per year.”
Because the bank used several different providers, the analysis team drafted and distributed a request for proposal outlining the bank’s needs across its three-state footprint. This helped determine whether the bank had the best provider options.
The team soon learned that, by moving all accounts to one national provider, the bank would save more than $80,000 per year. Cost Control Associates handled all the necessary negotiations and worked directly with that provider to close old accounts and transfer services to the new provider.
A separate review for electricity revealed rate opportunities that amounted to more than $15,000 in cost savings. With overall savings of $95,000, these bankers can smile at the improvement in their bottom line.
Valerie Paquin is account executive and senior analyst at Cost Control Associates. Since 1999 she has developed her utility-cost expertise for energy, water/sewer, telecom and waste removal. She earned the designation of project executive in 2012. Valerie received her ABA in accounting from State University of New York-Adirondack. Learn more.