Cost reduction consultants who share the risk.
Where we find savings
Cost reduction is not a single lever. It is a stack of them, and the mix depends on where the leakage sits in your business. We work across:
- Supplier spend - renegotiation, consolidation, re-tender across indirect and direct categories
- Tail spend - the 20% of spend with 80% of suppliers, usually unmanaged. See tail spend management
- IT and technology - the fastest way to reduce IT costs is usually licence rationalisation, cloud commitment tuning and renegotiation with the top three vendors
- Operating model - role, process and structure redesign to remove duplicated or low-value activity
- Outsourcing and offshoring - 30-50% cost reduction on suitable operational and back-office functions
- Automation and AI - practical, targeted automation with fast payback, not multi-year transformation
Business reduction services we deliver
Under the "business reduction services" banner sit the specific workstreams that take cost out and keep it out. Each has its own baseline, its own commercial model and its own savings track:
- Contract renegotiation on the top 10-20 suppliers by spend
- Indirect category sourcing (marketing, professional services, facilities, MRO)
- Energy, utilities and telecoms review
- Logistics, freight and warehousing optimisation
- Back-office process redesign and shared-service consolidation
Cost management: keeping the base disciplined once savings land
Cost reduction is a one-off release of value. Cost management is the ongoing discipline that protects it - budgets, policy, approval workflow, category ownership and reporting - so the base does not silently re-inflate between programmes. Caventis delivers both, typically in sequence.
- Spend policy: what needs approval, at what threshold, by whom
- Approval workflow design and system configuration
- Category ownership model - who owns each cost line and their targets
- Management reporting: monthly cost pack, variance analysis, drift alerts
- Supplier governance: contract renewal calendar and negotiation triggers
- Finance and budget-holder training so the framework sticks
The commercials differ: reduction runs on a shared-savings basis where a baseline can be measured; cost management is priced on scope - framework, rollout, training - because the value is discipline and prevention, not a single tracked number.
Cost optimisation companies - how to pick one
Search demand for "cost optimisation companies" (and the American spelling, cost optimization companies) covers a wide range of providers - from utility bill auditors to full-service consultancies. Choosing well comes down to four questions: does the firm work on your entire cost base or just one slice, does it implement or just recommend, is the commercial genuinely aligned to realised savings, and does it leave governance behind so the base does not re-inflate?
Caventis sits in the full-service, implementation-led, shared-savings quadrant of that market. Read more about strategic procurement services for the transformation-led alternative.
Our shared-savings model
Traditional cost reduction consulting firms and cost reduction companies charge day rates or fixed fees, regardless of whether savings actually land. Caventis is different. A small contingent fee funds delivery. The majority of our fee is tied to realised savings verified against your P&L. If we do not deliver, we do not get paid.
The commercial alignment matters. It means we only pursue initiatives with genuine bottom-line impact, and we prioritise speed of implementation over billable hours.
Also known as
Clients come to us searching for cost saving consultants, cost cutting consultants, cost cutting solutions, cost reduction advisory, cost reduction advisors, business savings experts or a cost reduction specialist. It is the same work under different labels: releasing value from the existing cost base and protecting it with governance.
Sectors we work in
- Private equity portfolio companies pre- or post-acquisition
- Manufacturing and industrial businesses
- Professional services and technology firms
- Financial services back office
- Not-for-profit and higher education
Cost reduction consultancy vs traditional cost reduction companies
Many UK cost reduction companies focus on utility bill audits, telecoms rebates or expense reclaims. That work is valuable but narrow. As a full cost reduction consultancy, Caventis operates across your entire cost base - procurement, operations, technology and support functions - with senior category expertise on every engagement.
Read more about why clients choose Caventis or explore all services.
For a deeper walkthrough of the levers we pull, see our guide to procurement cost reduction strategies that actually stick, the sector-specific breakdown of how to cut energy costs under Ofgem’s Targeted Charging Review, and how to release cash from underused marketing technology and opaque agency fees.
Before we challenge a price we work out what the item should cost. We break the price into materials, labour, overhead and margin so the negotiation is about cost drivers, not goodwill. See how we build a should-cost model.
Frequently asked questions
How is Caventis different from other cost reduction consultants?
Most cost reduction consultants typically charge day rates whether savings land or not. Caventis usually works on a shared-savings basis - a small contingent fee funds delivery, and the majority of our fee is tied to realised, measurable savings. Where a day rate or fixed fee is a better fit for the mandate, we will agree that instead.
What kind of savings do cost reduction consultants typically find?
Across indirect, direct and tail spend, well-scoped programmes deliver 8-17% of addressed spend as annualised savings. Outsourcing and automation-led programmes can go higher - 20-50% in selected functions.
Will cost reduction affect service or quality?
The point of good cost reduction is to remove waste, duplication and paid-for-but-unused capacity - not to cut what the business relies on. Governance, KPIs and supplier scorecards protect service levels through and after every change.
How long before we see savings?
A Cost Review takes 1-2 weeks. First contracted savings typically land 8-12 weeks after mobilisation, with the full annualised run rate in place within 6-9 months for most programmes.
Do you work on a no win no fee or contingency basis?
Close to it. Caventis works on a shared-savings (gainshare) basis: a small contingent fee funds mobilisation and delivery, and the majority of our fee is contingent on realised, P&L-verified savings. If the savings do not land, the majority of the fee is not paid.
How much does a cost reduction consultant cost?
On a shared-savings model, the effective cost to the client is a share of the savings actually delivered - typically structured so the client keeps the clear majority of the annualised benefit. There is a small contingent fee to fund the work, and the headline commercial is typically pay-for-performance rather than day rates. Day rate or fixed fee arrangements are available where they suit the mandate better.
What is gainshare or shared-savings consulting?
Gainshare (also called shared savings) is a commercial model where the consultant's fee is tied to measurable savings delivered against an agreed baseline. It aligns incentives: the consultant only wins meaningfully when the client's P&L improves. Caventis uses this model as standard for cost reduction engagements.
How do cost management consultants differ from cost reduction consultants?
Cost management consultants tend to focus on the ongoing control of cost - budgets, policy, approval workflow and reporting. Cost reduction consultants focus on one-off release of value from the existing cost base. Caventis does both, but the shared-savings commercial only applies to the reduction work where a baseline can be measured.
I'm a new CFO or new MD - where should I start on cost?
The first 90 days is the window where a cost review is politically welcomed rather than politically expensive. Start with a spend baseline and prize sizing in weeks 1-4, quick wins on the top 5-10 contracts in weeks 5-8, and finance-validated run-rate savings locked in by day 100. Full sequence in our new CFO 100 day cost review guide.
How do we reduce overheads quickly without hurting the business?
The fastest overhead reductions come from three places: cancelling unused or duplicate SaaS and licences, consolidating tail suppliers, and renegotiating the top 10 indirect contracts. A two-week diagnostic typically identifies 5-10% of overhead as removable without operational impact, with the first savings landing inside 60 days.
How should we respond to supplier price increases and supplier inflation?
Ask for the increase in writing with a cost breakdown, benchmark against category norms, and counter with volume, term or payment terms before accepting a headline number. Even a limited market test typically halves the ask. Formalise annual index-linked reviews so future increases follow a rule, not a request.
What does 'business reduction services' cover?
Business reduction services is an umbrella for the specific commercial workstreams that take cost out - contract renegotiation, tail spend cleanup, indirect category sourcing, energy and utilities review, logistics and freight optimisation, and back-office process redesign.
Related services
Specialist areas that complement this work.
End-to-end sourcing, negotiation and supplier management.
Attack the long tail of low-value, high-volume purchases.
Cost, consolidation and resilience across the supply chain.
Rebuild the function to make savings stick.
About Caventis
Caventis (Caventis Ltd, registered in England & Wales, company number 17158263) is a UK procurement, supply chain and cost reduction consultancy. It works with mid-market and PE-backed businesses to identify and deliver savings across procurement, operations and back-office spend, typically on a shared-savings basis where the majority of the fee is tied to realised, P&L-verified outcomes.
The firm was founded by Matt Buckley (MCIPS, Cranfield MBA, FCMI Chartered Manager), who leads every engagement personally, drawing on 15+ years of procurement, supply chain and cost transformation experience at bp and General Motors. Caventis is headquartered in the United Kingdom and serves clients nationwide.
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