Clearview Intelligence: Outsourcing Business Case
Clearview Intelligence create innovative solutions that harness intelligence to transform operator and driver behaviour, making travel easy, efficient and safe. Operating from two co-located sites in Bicester, Oxfordshire, Clearview were seeking to make efficiency savings by outsourcing their product storage and logistics function and ending the lease on one of the facilities.
Reporting directly to the MD, CMI were asked to revisit the proposals and redraft the business case to outsource the logistics and diagnostic and repair services to leverage cost savings by exiting the lease on their 5000 sqft warehouse facility in Bicester. In addition to the revisit and redraft there was an additional challenge; to win over a senior leadership team that were not fully supportive of the proposals and, who were sceptical about the need and cost of external support.
The initial approach was to undertake a baseline review of the current business operations located in the space to show how it was utilised, and the representative cost to each business unit. The analysis was able to demonstrate to the senior leadership team that the building utilisation was very inefficient in both cost and space terms.
A separate review of the diagnostic and repairs function and was able to demonstrate that the cost of providing the service was more expensive than the income received. This was due to the relatively high cost of supporting older products.
Discussions were then held with two suppliers to explore the principals of the outsourcing arrangements and indicative costs. With principals agreed, the business case was then redrafted the benefits which could be achieved.
CMI delivered a detailed report, underpinned by robust analysis, to demonstrate the costs and inefficiencies of the facility to the business. The report included several options and recommendations to show how cost savings could be achieved.
Once the analysis was reviewed by the senior leadership team the report was supported and CMI were retained to deliver the next stage of the project, which was to prepare an options analysis for exiting the facility.
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Clearview Intelligence’s Nick Lanigan commented,
“CMI showed great professionalism in the face of scepticism and internal resistance during their evaluation processes. Their report however, won support from the client’s Senior Management Team who agreed to retain them for the project’s subsequent phase”.