How a Leading CPG Brand Saved 7M of Direct Material Spend And Doubled Capacity in 20232024-06-03T10:41:47-06:00

How a Leading CPG Brand Saved $7M of Direct Material Spend And Doubled Capacity in 2023

How a Leading CPG Brand Saved $7M of Direct Material Spend And Doubled Capacity in 2023

At A Glance

$7 Million

EBITDA Improvement

ESG Improvements

Cleaner label, better carbon footprint, etc.

$3 Million

Cash Improvement

Doubled Capacity

Over 1 Million Units per Month

The Challenge

Forsyth Advisors was engaged by a CPG company whose massive growth had overtaken the current suppliers’ capacity. Forsyth Advisors led the effort of finding alternate sources to meet the increased demand with additional goals to improve product quality, secure ownership over IP, have production closer to the distribution centers, and reduce cost.

This reading is for middle market dealmakers, private equity operating partners, and strategic sourcing and procurement professionals.

Approach and execution

CM Search: Created supplier marketing campaign developing interest by premier personal care CMs.

Contracts: Established contractual relationships covering cost, payment terms, IP ownership transfer, rebate structure.

Capacity: Doubled capacity in less than 6 months with path to 10x capacity in 18 months.

Location: Reduced distance between manufacturer and distribution center by 90%, reducing both cost and carbon footprint.

Transition: Managed supplier qualification and transition to ensure capacity was online when needed.

Product Reformulation: Oversaw efforts to develop improved formulation and incorporated ESG standards.

Formula Ownership: Incumbent contract manufacturer owned formulas – ensured client owned all IP and had rights to transfer.

Quality: Resolved a number of quality issues and established process controls to sustain improvements.

Results

Combined EBITDA improvements amounted to over $7 million while freeing up $3 million of working capital.

SECTOR

Consumer Products
Personal Care Products

RELATED PRACTICE

Cost Reductions
Strategic Growth Initiatives
Revenue Growth
Organizational Improvement
Risk Mitigation

$7 Million

EBITDA Improvement

ESG Improvements

Cleaner label, better carbon footprint, etc.

$3 Million

Cash Improvement

Doubled Capacity

Over 1 Million Units per Month

“Forsyth Advisors was our key partner in developing our comprehensive supply chain strategy, leading the search and evaluation process, and project managing the tactical levels of the scale up to make us successful . . . and delivered against our cost, quality, and volume expectations in record time.”

MICHEAL M.
CEO

Download The Full Case Study

Examine how this CPG brand partnered with Forsyth Advisors to develop and execute on a hands-on strategic sourcing strategy.

CPG BRAND SEES $7M EBITDA IMPROVEMENT AND DOUBLED MANUFACTURING CAPACITY IN 2023

Our Leadership

James Pratt

Managing Partner

Nathan Overboe

Managing Partner

Matt Gieseking

Partner, Business Development

Sonja Hordvik

Chief Operating Officer

Oscar Owens

Vice President, Diligence

First Phase Cost Savings

100 Days Of Works + $100,000 Investment = $1,000,000 Execution-Ready Savings

Take the next step toward 10x ROI by scheduling a short consultation today. Our results are proven and worth a 15 minute conversation with one of our strategic sourcing advisors.

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