Case Study: Top U.S. Bakery Company achieves 10% reduction in raw material costs with GEP

How a Top U.S. Bakery Company Achieved 10% Reduction in Raw Material Costs by Partnering With GEP

A leading U.S. baking company with 40+ locations faced rising direct material costs after a commodity-price spike, especially for sugar, which it sourced from about five suppliers. Seeking to optimize COGS, the company selected GEP to identify and capture raw-material savings and implement a more robust e-sourcing approach focused on total cost of ownership.

GEP ran cross-functional interviews, leveraged its Category Advisory Groups and GEP SMART spend-analysis tools, and implemented targeted sourcing, packaging, transportation and supplier strategies (including beet-for-cane substitutions and volume/price adjustments). The engagement managed $80M+ of spend, identified $9M+ in P&L savings, delivered about a 10% reduction in raw-material costs, achieved 10–15% packaging savings, generated $100K+ additional value from export credits, and improved contracts and supplier risk management.