This work was for a $2B Household Chemicals Manufacturer in a Large-Cap Private Equity fund with more than $25B in investments.
PSS Role
- Analyzed over $900M in spending to identify targeted sourcing opportunities
- Managed sourcing process for 6 categories with $257.2M in combined spend. Categories included:
- Ethylene Glycol
- HDPE
- Cyanuric Acid
- Film Bags
- Ocean Freight
- Waste
- Corrugated
- Labels
- Bottles
- For the Bottles, Corrugated, & Labels categories, 90% of the total category savings ($10.1M) came from incumbent suppliers
Outcome
- Negotiated industry-leading pricing on $257.2M of spend on chemicals, packaging, & ocean freight
- Achieved $36.5M (14%) in cost savings
- Obtained supplier commitments to provide industry-leading pricing moving forward
- Savings on certain categories were as high as 21% (on Ethylene Glycol)
- Developed roadmap for new Center-led strategic sourcing team, with 4 category leads & head of Center of Excellence while improving the staffing profile by using fewer resources of higher quality
