Case Study: Retail Giant achieves 15% annual savings through strategic sourcing with GEP

Retail Giant Transforms Supply Chain, Achieves Savings Through Strategic Sourcing

The client, a $14 billion-plus global retail leader operating in Ecuador, spent about $2 million annually on warehouse management and transportation. Their supply chain was fragmented across two sites and more than six suppliers to support warehouse operations, ground transportation and 10+ co-packing formats, and the absence of an ERP made data collection and optimization difficult.

GEP mapped and redesigned the process to consolidate co-packing and 3PL into a single facility, ran strategic sourcing and competitive bidding, and reduced the supplier base to two through new contracts. The consolidation eliminated inbound co-packing transport, improved cost visibility, cut lead times for co-packed SKUs by over 10%, and delivered estimated annual savings of more than 15% (≈ $300,000).