Case Study: United States-Based Fresh and Frozen Foods Producer cuts procurement costs with AlixPartners

United States-Based Fresh and Frozen Foods Producer - Customer Case Study

United States-Based Fresh and Frozen Foods Producer turned to AlixPartners when rising costs, falling revenues and earnings, and weak information systems made it difficult to manage spending or pass price increases through to retailers. The company needed a better way to gather and evaluate supplier quotes across major spend categories, including packaging materials, product ingredients, facilities management, and freight hauling.

AlixPartners designed and implemented a competitive-quote and procurement savings program, taking charge of category teams, renegotiating contracts, standardizing specifications, and creating tools for traded agricultural commodities, contract language, and purchasing procedures. The results included lower overall cash expenditures, significant savings on non-commodity and commodity ingredients, reduced packaging costs, sharp drops in indirect spend, and avoided transportation cost increases despite fleet expansion and higher fuel and maintenance costs.