Case Study: a Fortune 500 consumer product goods manufacturer reduces packaging costs and improves supplier reliability with GEP Nexxe

Sourcing Cost Reduction Through Integrated Planning

GEP Nexxe worked with a Fortune 500 consumer product goods manufacturer that was facing rising costs and supply disruptions in its critical packaging materials category. The client's challenge was to find strategies to reduce these overall packaging costs and significantly enhance the reliability of its suppliers.

The solution from GEP Nexxe involved strategic category sourcing, including the integration of ERP systems for real-time production updates and a rationalization drive for packaging specifications. This approach resulted in the identification of cost-saving opportunities exceeding 15%. Furthermore, on-time delivery metrics for key suppliers dramatically improved from 55% to over 75% within just six months of implementation.