This work was for a $2B Alcoholic Beverage Contract Manufacturer in a Middle Market Private Equity fund with more than $15B in investments

PSS Role

• Managed sourcing process for 6 Indirect categories with $30.5M in combined spend. Subcategories included:
• Pallets
• Contract Labor
• MRO
• Utilities
• Material Handling
• Janitorial Services
• Negotiated favorable terms on;
• Pricing Stability (tied Pallets pricing to Wood Index w/ No fly zone)
• Rebates (Gross & Growth)
• Signing Bonus
• Payment Terms

Outcome

• Negotiated industry-leading pricing on $30.5M of spend on Pallets, Contract Labor, MRO, Utilities, Material Handling, & Janitorial Services
• Achieved $5.6M (18%) in cost savings for Year 1, over $67M in value creation
• Obtained supplier commitments to provide industry-leading pricing moving forward
• Savings on certain categories were as high as 19% (Pallets) and 24% (on Material Handling)