This work was for a $2B Alcoholic Beverage Contract Manufacturer in a Middle Market Private Equity fund with more than $15B in investments
PSS Role
- Managed sourcing process for 6 Indirect categories with $30.5M in combined spend. Subcategories included:
- Pallets
- Contract Labor
- MRO
- Utilities
- Material Handling
- Janitorial Services
- Negotiated favorable terms on;
- Pricing Stability (tied Pallets pricing to Wood Index w/ No fly zone)
- Rebates (Gross & Growth)
- Signing Bonus
- Payment Terms
Outcome
- Negotiated industry-leading pricing on $30.5M of spend on Pallets, Contract Labor, MRO, Utilities, Material Handling, & Janitorial Services
- Achieved $5.6M (18%) in cost savings for Year 1, over $67M in value creation
- Obtained supplier commitments to provide industry-leading pricing moving forward
- Savings on certain categories were as high as 19% (Pallets) and 24% (on Material Handling)
