Case studies › Packaging manufacturing

Case study

~$20M in year one. And an in‑house team that keeps finding it.

A packaging manufacturer built by acquisition, with no sourcing team and commodity costs eating into margin. Twelve months later it had a five-person team delivering the plan.

  • Packaging manufacturing
  • ANZ
  • ~$1B spend
  • Procurement function build
Packaging manufacturer · ANZ · year onep. 1 of 9

From no sourcing function to a team of five and ~$20M in twelve months.

StartSpend cube anddiagnostic, 5 BUs Week 8First sourcing eventon the new tool Month 12Team at 5 FTE,delivering the plan ~$20Msaved in year one 06 months12 months

Savings delivered to the P&L and signed off by the client’s finance team.

The numbers

Savings in year one, delivered to the P&L and signed off by finance
~$20M
Spend in the plan
$200M
Tool selection to first sourcing event
8 wks
To build a team of 5 FTE and deliver the plan
12 mths
The situation

Five business units, and no one running the spend.

A $1B-spend packaging manufacturer, built by acquisition and operating across five business units.

Purchasing was transactional, with no team to drive value or build engagement across the business units.

Meanwhile, commodity headwinds were eating into margin.

Starting point
  • Built by acquisition, five business units
  • Transactional purchasing
  • No strategic sourcing or category management
  • No source-to-contract system
  • Commodity headwinds on margin
What we did

Building in-house capability, not renting it.

  1. 01

    Built a spend cube and completed a diagnostic by working through the key stakeholders in each business unit

  2. 02

    Built a quick-win program, alongside a mid to long-term plan addressing $200M of spend

  3. 03

    Recruited two additional FTE to speed up execution

  4. 04

    Sourced and implemented a fit-for-purpose source-to-contract tool to get sourcing activity moving

Where the savings landed

Where the savings landed

~$20M in savings in year one of operations.

  • Delivered by activating a fit-for-purpose operating model
  • Delivered to the P&L and signed off by the client’s finance team
  • Reverse auctions ran across indirect categories

And the in-house team keeps finding more.

What stayed behind

A team that runs the plan, and the tool to run it on.

  • A team built to 5 FTE, delivering the plan within 12 months
  • A source-to-contract tool, from selection to the first sourcing event in eight weeks

The capability stays with the business, not with us.

The next step

Want the detail behind the numbers?

Tell us your situation and we’ll walk you through the engagements most like yours: the starting point, who had to move, and where the savings landed.

Tell us about your situation