Case Study
Health Care
48% reduction
in material costs
44% reduction
in personnel costs
Service line
Business Excellence
Duration
4.5 years
Syngroup Office
Vienna / Austria
Geography
Italy, 250 sites
Health Care
Background
Objectives
Our Approach
Background
Our client is one of the leading private clinical lab testing providers in Italy.
The company operates >240 sites in 15 regions of Italy, employing ca. 1200 people.
  • The private equity company was founded in 2013 with the goal of becoming the leading private lab network in Italy. The target was to buy existing labs and improve their EBIT.
  • To reach this goal, our client chose to substantially reduce costs without reducing service quality and turnover
  • Achieving these targets required an elaborate selection of target labs paired with an aggressive procurement strategy and a standardised layout of equipment and personnel at each site
Objectives
  • Create a road map for standardized Post-Merger-Integration and supervise its implementation
  • Reduce company-wide Cost of Goods
  • Develop a centralisation strategy for testing to decrease cost per site
  • Increase efficiency of value/supply chain
Focus area
Operational DD and PM-Integration
Cost and ROI analysis
Optimisation of personnel costs
Centralisation of manufacturing
Procurement
Negotiations with suppliers
Standardisation of machines & materials
Manufacturing and Supply Chain
Implementation of SOPs
Machine efficiency
Optimization of courier routes
IT
ERP selection for finance/procurement
Standardisation of ERP for production
Our Approach
  • Syngroup’s role was to support the client throughout the cost reduction and Post-Merger-Integration process:
  • We oversaw the preparation and execution of regular negotiations with suppliers to realise economies of scale
  • We also facilitated the development of a road map for centralising analytical testing results by creating and implementing standard layout s for equipment and personnel
  • A Project-Management-Office was implemented to organise, track and support a transparent and efficient integration process
  • We increased the efficiency of transportation and production to guarantee quality of service – for example, by optimising courier routes for faster delivery to labs
    • We supported IT by facilitating the development of a group-wide standard aimed at reducing inefficiencies due to the high number of interfaces and also improved the quality of data
Results
>240 successful Post-merger integrations
48% reduction in material costs for analytical testing over 3 years
44% reduction in operational PE/PRE costs per analytical test result
On average 41% of material cost savings within 4 months after closing
On average 15% of personnel cost savings within 3 months after closing
€1M savings in machine related costs within 4 years
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