$90 Million Print & Packaging Company
Over $4 million in annual savings generated in under six months
Challenge
A $90 million manufacturing company in the print and packaging industry suspected their current costs were not fully optimized. With the recent retirement of the company’s long-time head of purchasing, ISG was engaged to identify opportunities for cost optimizations.
Approach
ISG performed a Spend Analysis followed by a rapid, on-site Cost Optimization Assessment. ISG interviewed key stakeholders, from the CEO to line employees, to fully understand their requirements, philosophy, constraints, and sourcing history. Through the Assessment and Analysis, ISG identified approximately $20 million of spend ideal for sourcing projects. The series of sourcing projects targeted the following direct and indirect spend categories:
| Categories | ||
|---|---|---|
| Adhesives | Inks | Films |
| LTL Freight | Pressure-sensitive Labels | Production Paper |
| Small Parcel Shipping | Solvents | Temporary Labor |
Results
Delivered an EBITDA improvement of over 25% and nearly $2MM in annual cost savings. The newly-promoted head of purchasing worked alongside the ISG team, gaining tremendous knowledge transfer and helping to elevate the ongoing sourcing capabilities of his current sourcing team as part of the process.
