Delivering a 67% Unit Cost Reduction (and counting!!!) – Testimonial

Spend Analytics

Cost Reduction

Improvement Diagnostics

Cost reduction:

What we do…

Intro & requirement 

 

Alliance Procurement Solutions (APS) were approached by the longest running Fuel Cell (FC) company in the UKAdelan Ltd, to help them reduce the unit cost for one of their units, as they seek to leverage their future growth. 

 

It is a hugely exciting time for Adelan with the requirements for decarbonising our environment bigger and more important than ever. 

 

Adelan who invented the core microtubular solid oxide fuel cell (mSOFC) technology in 1992 have the technology to enable this to be delivered and are at the forefront of Hydrogen powered fuel cells. 

 

We met with Adelan on numerous occasions to understand their business and agree scope, which also included us recommending the best approach recognising the business needs.  Ultimately, Adelan’s objective is to achieve at least a 90% unit cost reduction. 

 

Our work  

 

Agreed to work with Adelan to strategically source, and make supplier recommendations for a range of critical components for their product.  We worked with Adelan to agree potential sources and used our toolkits to engage those suppliers.  Whilst the overarching objective was to reduce unit cost, we also needed to ensure the suppliers were capable of meeting future demand.    Using our capability assessment process, which was part of our Request for Proposal (RFP), ensured suppliers ability to scale up to demand and maintain product quality was assessed, but equally ensuring a balance is maintained so as to not over-burden the suppliers.  

 

It was important to source not just on the cheapest supplier but the best all round supplier, and where possible preferring UK Manufacturing sources.

 

 

The savings:

 

We project managed the whole project, created detailed cost modelling and analysis which enabled us to recommend keep Adelan informed throughout the process.

 

 

We facilitated all engagements with the suppliers, including site visits where required.

 

 

The result

 

Using our exceptional strategic sourcing process, and leveraging future growth we have worked with the recommended suppliers to reduce total unit cost by 67%.  But equally important, we have created a roadmap that will support further reduction to deliver 90% unit cost reduction in total, which will be underpinned through supplier collaboration.

 

Our Customer said

 

Gary Saunders, Chief Fuel Cell Engineer said, “APS have been very professional and thorough in the support they have provided.  They understood our requirements, and used their expertise to deliver what we needed.  Interfacing with me and my team when needed to ensure we were all aligned.

 

Michaela Kendall, CEO said, “It was great to work with APS, who really got to understand our business and was able to translate our strategic goals into this key delivery milestone for our business.  They have been engaging and supportive right through the process, and have been a pleasure to work with.  They really have given us the right platform to grow our business, and we can’t thank them enough!”

 

https://adelan.co.uk/

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0330 311 2601