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)