Preferred Sourcing Solutions

Achieved $5.5M (22%) in cost savings with an estimated $50M in value creation

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


  • 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)