Case Study: a global chemicals company cuts supplier base by 70% and saves 12% on raw materials with GEP

Global Chemicals Company reduces supplier base by 70% and boosts EBITDA margins with GEP

The customer, a global chemicals company, faced high costs and complexity from a fragmented supply base involving over 350 suppliers for more than 400 raw materials across four regions. They partnered with vendor GEP to consolidate vendors and leverage global buying power.

GEP executed a global sourcing strategy and negotiated favorable contract terms. This solution reduced the supplier base by 70% and delivered 12% savings on raw materials, which translated to a 12% higher EBITDA margin on direct tail spend for the client.

Global Chemicals Company