Case Study: a multinational food manufacturing company achieves 12% savings with GEP’s cost clean sheet model

Fortune 500 FMCG Company Realizes 12 Percent Savings With GEP’s Cost Clean Sheet Model

A multinational food manufacturing company sought to reduce its operational spend in the Asia-Pacific region, with a major challenge being the optimization of its over $15 million annual spend on premixes. The client lacked visibility into the key cost drivers for these premixes, which were subject to rising prices due to forex fluctuations and supply constraints. They engaged GEP to address this challenge.

GEP implemented a cost clean sheet model, which involved identifying key cost drivers, benchmarking prices, and negotiating with the supplier. Through this process, GEP helped the client realize savings upwards of 12 percent by reducing overhead allocations, negotiating material costs, and establishing a new supply chain model. GEP also secured a mechanism to hedge against foreign exchange risks, providing long-term financial stability.