Once stable and reliable production systems in the consumer products industry are under assault. Sourcing and procurement professionals in this industry need to address rising commodity costs, the digitization of global supply chains, growing consumer preference for ‘next day’ delivery, and a more active regulatory environment.
Impendi’s deep experience with consumer products firms can help procurement professionals in this newly dynamic industry to ask the right questions and find answers to rising labor costs, measuring marketing effectiveness, mass customization of products, and being responsive to investor demands for verifiable progress on corporate responsibility within the supply chain.
Case study: Skin Care Manufacturer
The new private equity parent of a leading skincare manufacturer asked Impendi to investigate post-deal opportunities to improve EBITDA delivery and boost enterprise value.
The Approach
Following introductory Canvass interviews with key purchasing stakeholders to understand the current situation, conducted a Spend Diagnostic that identified value capture opportunities.
Prioritized opportunities with the portfolio company’s team, then pursued a Saving Acceleration initiative utilizing proprietary analytics tracking and stage-gated decision making with the client.
Performed a maturity assessment of procurement purchasing policies and practices. Then, joined with C-Suite executives to assist in building out the purchasing function and addressing culture issues.
The Results
Find – Identified savings opportunities in IT, third party expenses, indirect spend categories and contract term improvements totaling $4MM+.
Get – Verified $5MM of savings even though the pandemic reduced that engagement scope, postponing addressable spend in some logistics and professional services due to market conditions
Keep – Improved ongoing savings opportunity implementation within Impendi’s Procurement PMO and improved monitoring with Realized Savings Tracker.
Case study: Fashion Retailer
A leading specialty retailer of fashion jewelry and accessories for young women, teens, and kids sought a procurement transformational partner to support a comprehensive restructuring and readying of the company for its IPO.
The Approach
Conducted client-centric assessment of the opportunities and challenges based on stakeholder interviews with C-suite executives, function leaders and operating partners of the PE firm.
Utilizing AP spend data and proprietary benchmarking, conducted a Spend Diagnostic that defined a value capture roadmap that included savings targets, critical levers, resource constraints, and time-to-value.
Led a cross-functional team of client personnel through a 5-month value capture effort that leveraged category playbooks within a bi-weekly, stage-gated PMO environment.
The Results
Find – Identified $4-6MM in savings from new store/remodel construction and other indirect spend categories.
Get – Verified $5MM of savings even though the pandemic reduced that engagement scope, eliminating addressable spend in logistics and professional services.
Keep – Defined the role and trained a Director of Indirect Procurement and helped to customize a Realized Savings Tracker to continue the savings momentum.
Case study: Nutraceutical Company
A global distributor of nutritional foods requested Impendi’s assistance in a cost take-out initiative mandated by the company’s new ownership group.
The Approach
Informed by stakeholder interviews with C-suite executives, function leaders and investors, designed an engagement focused on immediate upside and long-term value creation through strategic sourcing and procurement.
Within six weeks, prioritized opportunities and stood a Saving Acceleration initiative utilizing proprietary savings analytics tracking and stage-gated decision making with the client.
Helped to establish strategic sourcing as a driver of organizational value by training the client’s teams to generate data-driven insights, develop action plans, and track progress within a PMO structure.
The Results
Find – Identified $13MM+ in cost takeout opportunities from a Spend Diagnostic that evaluated $130MM in spend.
Get – Validated $10MM+ in savings capture in first 12 months, including $1MM in first 6 weeks. The team developed detailed capture plans for incremental $7MM+.
Keep – Ongoing tracking and monitoring of cost reduction initiatives supported by Impendi’s Realized Savings Tracker and by implementation of disciplines in Impendi’s Procurement PMO structure.
