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