Case Studies

Negotiated $36.5M (14%) in annual savings resulting in $350M in estimated value creation

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