Consumer Products Packaging Firm Saves 14% on a $6 Million Spend

Challenge

  • A wide variety of needs and service level requirements with 14 locations throughout the United States
  • Independent buying functions created by acquisitions and significant growth
  • No effort to aggregate demand and leverage purchases
  • Lack of time to address corrugated packaging, despite strong corporate purchasing organization

Strategy

  • Visited client facilities to understand needs
  • Interviewed potential suppliers to pre-qualify and validate capabilities
  • Issued detailed RFP to 10 pre-qualified suppliers
  • Conducted analysis of responses, normalized data and negotiated final terms
  • Presented recommendations and opportunities for savings

Value Summary Results

  • Saved 14% across a $6 million spend – some individual plants realized double-digit savings with no change in supplier
  • Implemented new service programs to include warehousing and mixed truckload shipments
  • Consolidated supplier base from 16 to five, reducing transactions and complexity across the enterprise
  • Ongoing United Sourcing Alliance monitoring of market prices assures client pricing remains highly competitive