Strategic sourcing saving 5% spend for an adhesives producer
- Location
- Illinois, USA
- Year
- 2024
- Engagement
- Profitability Improvement: Sourcing & Procurement
Manufacturer of specialty tapes, films and adhesive products is owned by Private Equity firm. The owner is seeking refinancing and required significant cost-savings initiatives to improve risk profile. Procurement savings suspected to be highest value for effort.
Our team analyzed 125+ top spend items against commodity indices and obtained 100+ spot quotes. We identified opportunities to consolidate spend across 6 brands, and rationalize SKUs for buying power. We assessed procurement process, responsibilities and system tools to determine root causes.
Measurable impact
$7M
Identified $4-7M p.a. opportunity in direct spend
Chemicals, Plastics and Packaging
Measurable impact
$20M
Estimated $20M EBITDA opportunity through additional phases in Operations, Logistics, Sales, S&OP
Chemicals, Plastics and Packaging
Measurable impact
4:1
Procurement phase delivered with $10M+ savings achieved over 6 months (4:1 ROI)
Chemicals, Plastics and Packaging