Supply Chain Case Studies
Sourcing of Packaging Materials
Client: A $3 Billion Consumer Products Company.
Background: CCC was engaged to help lower costs for a key packaging material used by major brands in a medium sized consumer products company. The client did not want to change suppliers but did want to exert pressure on the existing supplier to lower costs. After an initial review, CCC suggested a combination of techniques aimed at reducing costs on an on-going, structural basis that would simultaneously ensure the client was not paying more than competition for the same basic material. The special challenge presented by the competitive assessment was the significantly lower client volume for the material versus much larger competition.
Process and Results: Because CCC was able to develop and execute a very successful approach that met the needs and challenges posed above, we were asked to look at a large array of indirect client costs (indirect costs are services, equipment and materials i.e. those that are not part of the finished consumer product). We recommended and helped map all indirect expenditures and suggest sourcing strategies for each major indirect cost--save personnel related and marketing costs, as those were viewed as sacrosanct. This effort too was very successful, helped the client lower indirect costs dramatically, and subsequently led to a look at the marketing costs, which is an on-going effort.
Bruce Stirling spent 27 Years with P&G in various roles, including Vice President of Purchases for Fabric & Home Care (Brussels) and as Vice President of Corporate Purchases (Cincinnati). He has decades of experience and impressive results in all areas of purchasing and has created/executed global sourcing strategies saving P&G hundreds of millions.
Contact Information: Call or email Dick Bruder, CCC President/CEO, at (513) 233-0011 or dbruder@cincconsult.com or Bruce Stirling, Senior CCC Consultant at bstirling@cincconsult.com or at 941-964-0674.
