Optimization of technically-complex packaging materials
Objectives were to reduce costs, improve recycled plastic content for sustainability purposes and resolve several frequent quality issues
Read moreContext
- Client is a producer of agricultural products
- Focus was on LDPE flat film packaging, purchased by 5 European sites. Total spend of ca. €6m/year for a quantity of ca. 2m kg consisting of >500 SKUs; currently no contracts in place
- Objectives were to reduce costs, improve recycled plastic content for sustainability purposes and resolve several frequent quality issues
Our approach
> 500
Collected 10+ product specification parameters for >500 SKUs leveraging >10 different (internal & external) sources. Organized first joint tender across all 5 sites, co-ordinating between all stakeholders.
> 4.000
Built detailed database at level of each individual order (>4000 lines), applying index normalization for fluctuating LDPE prices. Evaluated >90 potential suppliers, received 24 offers and individually met 18 companies
+ 3
Successfully concluded quality testing of 3 new suppliers in close coordination with operations. Developing a transition plan to switch to new suppliers, while maintaining operational continuity during peak season.
The impact of our
expert involvement.
11 to 15%
Total annual savings identified of 11-15% or €650-900k, through unit price reduction, specification harmonization and order quantity optimization
50%
Improved recycling: all SKUs enabled up to 50% PCR for W-EU sites
3 - 4 weeks
Significant lead time improvement: new suppliers offer 3-4w instead of up to 10w with incumbents
Annual savings
€ 650.000 - 900.000
Total annual
savings
8%
Unit price reduction
1 - 3%
Specification review
2 - 4%
Order quantity optimization
11 - 15%
Total savings
