Client

Arvia Technologies is an award-winning innovator in water treatment, spun out from the University of Manchester. The company is the first to deliver an on-site treatment solution for aqueous organic pollutants, working with UK water utilities, groundwater specialists and industrial clients to tackle trade effluent challenges that conventional technologies struggle to handle economically.

The Situation

Arvia had the science, the patents and a growing reputation. What it did not have was a commercial cost base. The reactor units sitting at the heart of its treatment process were too expensive to manufacture, which left the technology unable to compete head to head with established alternatives.

For a spinout moving from proven concept to full scale deployment, that gap is existential. With contracts in the pipeline and water utility customers expecting plants to be deployed over the next two to three years, Arvia needed to take meaningful cost out of the product, fast, and build a supplier base capable of supporting full scale rollout.

The brief to Pro Outsourcing was direct. Strip out cost, protect performance, and put the right delivery partners in place to industrialise the build.

Our Approach

We took a two track approach, running cost reduction and supplier development in parallel rather than in sequence.

Design to Cost (DTC) led redesign

Working alongside Arvia’s design and engineering team, we applied Design to Cost principles to challenge every element of the reactor build. The focus was practical, not theoretical. We looked at materials, components, manufacturing methods and tolerances, asking in each case whether the original choice was driven by performance need or by legacy assumption. Where alternatives existed, we modelled the cost and engineering trade off and brought options back to the design team for sign off.

Spend analysis and demand forecasting

We extracted historic spend data from Arvia’s SAGE system and built a forward view of volumes, projecting future demand against the deployment pipeline. That gave us credible numbers to take to market and a baseline against which savings could be measured.

Supplier identification and RFQ

We developed an inventory of capable suppliers across process, electrical and civil disciplines, then issued a structured RFQ package to a selected shortlist. The package set out volumes, projections and the partnership model Arvia wanted, so suppliers could price and respond against a clear commercial picture rather than a one off enquiry.

Negotiation and validation

We analysed the responses, ran multiple rounds of commercial negotiation, and then took the high potential suppliers through on site validation alongside Arvia’s internal team. The audits covered engineering capability, technical components, financial stability and quality, so the final selection was based on evidence rather than presentation.

The Results

The headline number is the one that matters most. Reactor unit cost was reduced by 98%, achieved through a combination of alternative materials, redesigned components and a shift in manufacturing technique. That single change moved the technology from commercially marginal to commercially competitive.

Alongside the cost reduction, Arvia now has a delivery ecosystem in place. We secured partnerships with a select group of suppliers covering process, electrical and civil works, capable of supporting full scale plant deployment. Several of these partners bring industry best practice that Arvia can pull on as it scales.

The work has also given the business something less visible but equally important. Validated spend data, forward demand visibility, a tested supplier panel and a repeatable sourcing approach. That foundation means future cost out and growth decisions can be made on facts, not assumptions.

Why This Matters

For innovators moving from pilot to scale, the technology rarely fails first. The commercial model does. Cost of manufacture, supply chain capacity and delivery partner quality are the three things that decide whether a breakthrough product wins or stalls.

This engagement is a clear example of how fractional procurement leadership, applied at the right moment, can change a company’s commercial trajectory. Sharp focus on cost, evidence based supplier selection, and the discipline to embed the changes rather than walk away once the savings are signed off.

Could we do the same for you?

If you are scaling a product, struggling with cost of manufacture, or about to commit to long term supplier partnerships, we can help you make the right calls. Get in touch to discuss how a focused piece of work could change your numbers.