Case Study: Global Chemicals Company achieves 70% supplier consolidation and 12% raw-material savings with GEP

Chemicals Maker Consolidates Supplier Base by 70%, Achieves 12% Savings on Raw Materials

A leading global chemicals company, following a cross‑border merger, faced a highly fragmented direct‑materials supply base—more than 400 materials sourced from 350+ suppliers across four regions—resulting in poor spend visibility, uncontrolled tail purchases and missed synergy opportunities. The company needed to rationalize suppliers, increase spend under management and implement a global sourcing strategy to capture its increased buying power and reduce costs.

Partnering with GEP, the team classified spend, identified 20+ high‑spend tail chemicals, ran global RFx events and direct negotiations, bundled low‑volume items, shifted spot buys into 1–2 year contracts and consolidated generic sourcing to fewer suppliers. The program cut the supplier base by over 70%, delivered a 12% EBITDA improvement on tail projects (and 11% savings on total tail spend), and reduced a key material’s price by 40%, while creating ongoing global buying leverage.