This work was for a $3B Food Contract Manufacturer in a Middle Market Private Equity fund with more than $15B in investments
PSS Role
- Managed sourcing process for 5 MRO subcategories with $24.5M in combined spend. Subcategories included:
- Safety/PPE
- Jan/San
- General MRO
- Specialty MRO
- Electrical
- Rationalized MRO Supplier Base from 47 suppliers to 5 suppliers
- Negotiated favorable terms on;
- Pricing Stability
- Rebates (Gross & Growth)
- Signing Bonus
- Guaranteed Cost Reduction
- Payment Terms
- Meet or Beat Pricing
Outcome
- Negotiated industry-leading pricing on $24.5M of spend on Safety/PPE, Jan/San, General, Specialty, & Electrical MRO
- Achieved $5.5M (22%) in cost savings for Year 1
- Total 3 Year Incremental P&L Impact of $7.8M
- Obtained supplier commitments to provide industry-leading pricing moving forward
- Savings on certain subcategories were as high as 35% (on Safety/PPE) and 22% (on Jan/San)
