Case Study: a Fortune 500 CPG company saves 20% on egg sourcing with GEP

How a Fortune 500 CPG Company Saved 20% on Key Raw Material Category by Partnering With GEP

A major Fortune 500 CPG company faced significant challenges in sourcing eggs, a key raw material. A surge in demand, particularly for egg whites, was met with a shrinking supplier base due to industry consolidation. This resulted in rising costs and threats to supply continuity, prompting the company to partner with GEP for its procurement expertise and likely leveraging GEP CONSULTING or GEP MANAGED SERVICES to optimize its $14 million spend category.

GEP implemented a data-driven approach, conducting a deep value and cost analysis to understand pricing drivers. A key recommendation was to transition the company from a layer-based pricing model to a more transparent, feed-based pricing approach through a managed RFP process. This strategy, combined with identifying reformulation opportunities, delivered substantial results. GEP helped the client achieve 9% in negotiated savings and an additional 11% in savings through product reformulation, for a total of 20% savings on the category.