A $300M industrial manufacturer
Rebuilding margin at a mid-market industrial manufacturer
Expanded EBITDA margin by 320 basis points in 18 months.
320 bpsEBITDA margin expansion
$22MAnnualized cost out
18 moTo full run-rate
Cost & Margin · Consumer & Retail
Re-engineering COGS at a consumer-goods manufacturer
A $300M consumer-goods manufacturer
Reduced COGS by 14% — roughly $22M annualized — in nine months.
14%
COGS reduction
$22M
Annualized savings
9 mo
Delivery time
01 The challenge
A consumer-goods manufacturer faced relentless input-cost inflation and a procurement function that had grown fragmented and reactive. Margin was eroding faster than pricing could keep up.
02 Our approach
- 01Built a category-level spend baseline and identified the highest-value sourcing opportunities.
- 02Consolidated suppliers and renegotiated the top categories with a clear should-cost view.
- 03Re-engineered specifications and reduced complexity where it added cost but not value.
- 04Embedded procurement discipline and a tracking cadence to lock in the savings.
03 The outcome
COGS fell 14% — about $22M on an annualized basis — within nine months, with a procurement operating model that keeps the gains from drifting back.
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