Overview
A Fortune 500 global manufacturer of packaging plastic products, with over 250 locations and over 40,000 employees. The company provides products for marquee, name brand clients and has three core divisions: Consumer Packaging, Health & Hygiene, and Engineered Products.
Challenges
Due to their large size, efficient category management and oversight had proven difficult on their own. They sought out Procure Analytics, looking for a GPO+ model that could help them achieve savings while providing longer-term category support and services.
Approach
The PA team first determined that connecting them to one supplier in the General MRO program could drive significant savings across their North American locations (including Canada, US, and Mexico plants). PA ran a number of analyses and benchmarking exercises to determine additional savings drivers, including:
- A SKU consolidation exercise for safety wear that showed over $100,000 in savings and significant SKU count reduction
- Spend analyses to vet market competitiveness
- Preferred pricing from key manufacturers
Results
The member achieved 12% upfront savings by joining the MRO program, and has transitioned additional non-program supplier spend that has resulted in an additional 17% savings.
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- CATEGORIES
- MRO