Interview: Verallis Romania Experts use Real-Life Cost Analysis Model to Optimize Costs & Reduce Operating Expenses
By Mrs. Anamaria Diaconescu – HRCC Director| Dec 27, 2021 |
Verallis is using Cost Analysis Model as their go-to-market solution for cost optimization projects, in addition to internal and external benchmarking and understanding the potential of every project committed and entrusted by its Romanian business partners. We talked with Mihaela Beceanu, Partner and Business Analyst of Verallis in Romania, about how Verallis came at the “perfect time” on this market and why she sees such services implemented country-wide over the next year.
AD: Mihaela, thanks for confirming our invitation. Can you start by telling us about Verallis, what the company does, and which is your role in the organization?
MB: First of all, I would like to thank you for the opportunity offered by the Hellenic – Romanian Bilateral Chamber of Commerce to introduce ourselves. We were honored to receive your and Mr. Christos Seferis’s invitation to become members of the Hellenic – Romanian Bilateral Chamber of Commerce. Verallis partners are proud to be part of Hellenic Romanian Bilateral Chamber of Commerce communities of members and friends from both countries, Romania and Greece.
Verallis is a Greek originated company, that implements cost management methodology, providing operational and procurement optimization solutions. We rely on expertise of Partners with industry-specific knowledge and more than 15 years market activity. Our performance is the result of a long career, exposed to culturally diverse business environments, fostering innovation and “out of the box” business practices.
The company was established in Greece in 2007 and by 2008 reached 10 partners. First collaboration with Public Sector was made by 2011 and by 2013 it was rebranded as Verallis. 2017 was the year when the business gathered together 20 partners and by 2020 a new procurement management services was managed with the 25 partners in Greece. Verallis has expanded business activity on the Romanian market starting May 2021, offering its customers best in class business services of cost management.
My mission began 8 months ago as a Partner and over this period I have moved into a Business Analyst role as we made our entrance on the Romanian market and started managing cost optimization projects in various cost categories.
AD: How many people at Verallis are addressing Romanian market?
MB: The services are supported by the local competencies of a team of 10 experienced Partners, Business Experts and Analysts with industry-specific skills and knowledge, doubled by the expertise of the Verallis Greece Group.
AD: So, Verallis use a Cost Analysis Model. Tell us about Verallis experience – how did you get started and how does your services help Romanian companies?
MB: Verallis' fundamental focus is to generate value and revenue for Romanian companies, helping organizations to increase profit margins.
In a market facing unprecedented disruptions and changes in scale and speed, success of enterprises needs to be ensured through more than marginal savings. During the hardened period of the pandemic, businesses are realizing that the way to profitable growth goes through the challenge of fundamental transformation and cutting costs. CEOs and business leaders adapt and rethink their operating models to reduce expenses and improve return, leaving room for company strategies to concentrate on growth, innovation and market development, targeting competitive relevance in this disrupted marketplace. This is the moment Verallis Partners enters in action and this is the reason we say we came on this market-place at the right time.
AD: How can you describe the experience of working with Verallis for your customers?
MB: Our approach is complete and covers all aspects starting with identification of market opportunities, measuring the impact using spend analysis metrics and ends-up with implementation, as the partners integrate into company operations for periods of 24 or 48 months, to secure that all corrective actions will be fully implemented, and to ensure that the initially estimated savings figures will be fully achieved.
We specialize on helping private and state-owned organizations to reduce their operating expenses. From a tiny chain of retail stores to a multinational oil company, we perform at the highest level in a wide range of diverse businesses. We assist C-suite Executives and senior level Executives, in almost every business sector, to discover incremental profit gains by reducing expenses in various OpEx categories in complete harmony with the client’s organizational culture.
AD: What would your customers expect?
MB: After completing the Cost Analyze journey, our analysts continue to monitor projects in order to ensure that new services are implemented properly, quality provided is at the right level and to determine savings precisely. We usually start saving money in less than 90 days following the project’s initiation.
It should be emphasized that more than 50% of our clients have retained their current suppliers, but at a significantly improved cost.
AD: How much are you saving with Verallis Model? Any estimates of how much your clients will save?
MB: We pride ourselves on honoring our commitment to principle 'no savings, no fee'. Our fees come from the savings achieved in more than 50 cost categories we cover. More specifically, VERALLIS receives up to 50% of the actualized savings over the period of the project, assisting our clients in securing an average savings benefit of 23.7%, with up to 1.9 million Euro/project.
AD: How are you addressing data and information received from your customers?
MB: We operate with confidentiality and transparency, under a strict code of ethics and in absolute independence from our suppliers. Our total revenues figure is exclusively derived from clients' achieved cost savings. Equally important is the fact that cost reduction is achieved without sacrificing quality standards.
VERALLIS applies a Quality Management System in line with the Standard EN ISO 9001:2015 for Operations, Procurement & Expense Reduction Services, holding an ISO 9001:2015 Certification (No.: 20001200003512) from TÜV AUSTRIA Hellas.
AD: In how many companies you used the tool and in how many projects has been implemented?
MB: Verallis use process approaches crafted on more than 560 real projects with over 140 enterprises. A very important step is setting the internal and external benchmarking and understanding the potential of the project. Client costs are compared with the ones of competitors, industry benchmarks or to historical internal registers. Process improvements are envisaged in order to increase efficiency of the unit. We identify the best processes and scale them across the Client’s organization, optimizing with technology or best practices for reaching optimum resources utilization with lowest economic and human effort.
AD: Is interesting that you mention the numerous projects – what do you think contributes to that success?
MB: The great advantage brought by Verallis Model – and it is really hard to argue with that approach – is that it is based on real implemented projects.
Verallis 10 steps Model focus on optimizing instead of cutting expenses to ensure that our Client’s business maximize their potential. We help our customers make right choices and align the optimal costs with the strategy for growth.
Now we’re excited to be using Verallis Model in Romania. We were initially attracted to it because you chose to do one thing – that is cost optimization - and do it well.
AD: That’s great to hear. Anything else you would like to add?
MB: This is the beginning of a very good partnership. We have gotten great response from the market and visibility support from the Hellenic – Romanian Bilateral Chamber of Commerce. Verallis Company runs a new development around the product and services.
This is obvious: a lot of customers realize right that proper cost optimization is challenging. You’ve got to employ right tools that allow you to gain visibility into corporate spend, as well as drive performance improvement, contract compliance, and most importantly, cost savings. With Verallis Cost Analysis Model you can have that.
AD: Thanks, Mihaela!
MB: Thank you Anamaria! We wish Verallis Clients a Merry Christmas and a Happy New Year!