Case Studies
Optimizing Display Services for a Multinational CPG Client
Client Snapshot
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Industry: Large Multinational CPG (North America Division)
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Objective: Achieve efficiency and cost savings in retail display design, production, and assembly
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Spend: $50M annually
Background & Challenges
The client relied on a single vertically integrated supplier for three primary services:
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Design: Service quality was satisfactory, but speed was slow (a week for initial concepts, a month for final designs).
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Corrugated Supply & Production: Timeliness and quality were acceptable; however, costs were high due to single sourcing.
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Assembly: A 200,000 sq. ft. assembly facility co-located with the client’s distribution center worked well operationally, but the supplier lacked a true core competency in assembly.
Key Issue: The one-size-fits-all supplier contract left significant cost and efficiency opportunities on the table.
Approach & Strategy
1. Separate RFP Processes
Splitting the services—design, supply, and assembly—enabled targeted competition and precise cost comparisons. Standardized designs and volume profiles in each RFI/RFP ensured an apples-to-apples evaluation.
2. Design Competition
A comprehensive RFI/RFP included a live design competition. Participants proposed creative solutions to accelerate speed-to-market, a critical pain point.
3. Supply & Assembly Bids
Supply and assembly were bid out individually. Detailed specifications and volume scenarios allowed the client to benchmark supplier capabilities and costs accurately.
Implementation & Execution
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Design: The incumbent supplier retained the business but revamped its model:
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Moved from a large, dedicated local team to a smaller on-site presence integrated with client category teams—allowing same-day project briefs.
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Leveraged a global, “follow-the-sun” workflow (U.S. → Mumbai → Warsaw), reducing concept turnaround from one week to one day and final designs from a month to one week.
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Supply: Also awarded to the incumbent, but at a negotiated reduction in material costs.
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Assembly: Awarded to a new provider after confirming the incumbent’s limitations in assembly competencies.
Results & Impact
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Speed: Reduced design cycle time from 1 week to 1 day for concepts, 1 month to 1 week for finals.
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Cost Savings: Exceeded $10M on an annual spend of $50M.
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Operational Efficiency: Streamlined processes across design, supply, and assembly with clear ownership and specialized expertise.
Key Takeaway
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By unbundling a single, vertically integrated contract into separate best-in-class services, the client dramatically improved speed-to-market and achieved substantial cost reductions—all while maintaining high quality standards.
Securing Cost-Effective Glass Supply for a Leading
Client Snapshot
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Industry: Major US Based Winery (Over 2M Cases Annually)
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Objective: Mitigate cost increases from tariffs and secure a stable glass supply
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Spend: $16.25m annually on glass packaging
Background & Challenges
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The client faced a significant cost challenge when newly imposed tariffs on Chinese glass increased prices by 25%. Compounding the issue, global supply chain disruptions during COVID-19 created volatility in lead times and availability.
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The existing glass supply was heavily reliant on a limited number of vendors, making it difficult to pivot quickly. Without a prompt solution, rising costs and potential supply shortages threatened to impact production schedules and profitability.
Approach & Strategy
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Comprehensive RFP Process
A structured RFP was issued to a diverse set of suppliers across North America and Europe. This allowed for competitive benchmarking of costs, lead times, and quality standards.
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Supplier Diversification
Two new suppliers were onboarded to reduce reliance on a single source and create a more resilient supply chain. Volume allocations were strategically split to optimize costs while maintaining flexibility.
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Logistics & Contingency Planning
Freight and warehousing strategies were reassessed to ensure smooth transitions and mitigate potential bottlenecks. A buffer stock strategy was also implemented to safeguard against future disruptions.
Implementation & Execution
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Supplier Transition: The new suppliers were integrated seamlessly into production schedules, ensuring no interruptions to bottling operations.
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Cost Negotiations: Competitive bidding and volume commitments secured favorable pricing, mitigating most of the tariff-driven cost increases.
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Supply Chain Stability: By diversifying sourcing and improving logistics, the client ensured consistent availability of glass, even during volatile market conditions.
Results & Impact
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Cost Savings: Achieved $1.2M in annual savings despite the 25% tariff increase.
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Supply Chain Resilience: Eliminated single-source dependency and improved risk management.
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Operational Continuity: Ensured uninterrupted production and maintained high-quality packaging standards.
Key Takeaway
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By acting swiftly with a structured sourcing strategy, the client successfully mitigated cost pressures and strengthened supply chain resilience. Diversifying suppliers and optimizing logistics provided long-term stability while delivering significant savings.
Securing Domestic Glass Supply Chain for a Leading Beverage Company
Client Snapshot
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Industry: Major US Based Beverage Producer (6.5M Cases Annually)
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Objective: Reduce dependency on Chinese glass, control costs, and secure supply chain stability
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Spend: $23.7m annually on glass packaging
Background & Challenges
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The client sourced most of its glass packaging from China, but escalating tariffs and ongoing supply chain disruptions drove costs higher. Additionally, global glass shortages and skyrocketing container shipping fees (peaking at $25K per container during COVID-19) created significant volatility in pricing and lead times.
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Without a reliable and cost-effective alternative, the client risked major delays in production and increasing cost pressures that could impact profitability.
Approach & Strategy
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Shift to Domestic Supply Chain
We identified and onboarded domestic glass manufacturers that could meet the client’s volume and quality requirements at a competitive price point.
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Cost Optimization by Location
By aligning glass supply with manufacturing and distribution hubs, we optimized logistics and transportation costs. For locations near glass plants, total costs were reduced by approximately $1 per case compared to China.
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Risk Mitigation & Supply Chain Resilience
Reducing reliance on overseas sourcing ensured better long-term stability. Domestic supply eliminated container-related uncertainties and significantly shortened transport times.
Implementation & Execution
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Supplier Integration: Seamless transition to U.S.-based suppliers without disrupting production schedules.
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Logistics & Efficiency Gains: Domestic sourcing cut weeks off lead times, reducing inventory risks and improving agility.
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Cost Parity with China: Achieved competitive pricing with improved quality, and in certain regions, even lower costs due to reduced transportation expenses.
Results & Impact
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Cost Neutrality: Matched China’s pricing for high-quality glass, with some locations seeing savings of $1 per case.
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Supply Chain Security: Eliminated dependency on overseas suppliers, avoiding tariff risks and unpredictable shipping costs.
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Faster Lead Times: Shortened transport times by weeks, improving production efficiency.
Key Takeaway
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By transitioning from Chinese suppliers to a U.S.-based glass supply chain, the client safeguarded its operations from tariff fluctuations and global disruptions while maintaining cost competitiveness. Optimized logistics further enhanced savings and supply reliability.
Driving Cost Savings & Stability in Aluminum Can Procurement
Client Snapshot
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Industry: Major Beverage Company
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Objective: Reduce aluminum can costs while maintaining supplier stability
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Spend: $12.6m annually on aluminum cans
Background & Challenges
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During the peak of COVID-19, aluminum prices surged, creating significant cost pressures on packaging procurement. The client’s aluminum can supply was critical to uninterrupted production, but the rising commodity costs (LME-driven) and volatile market conditions posed risks.
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A major RFP was launched to explore cost-saving opportunities, but the challenge was to secure multi-year supply chain stability without disrupting operations. Additionally, the contract structure allowed the supplier to adjust prices annually based on aluminum market fluctuations, presenting further financial uncertainty.
Approach & Strategy
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Comprehensive RFP Process
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Engaged all major aluminum can suppliers to benchmark pricing and contract terms.
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Maintained competitive pressure while ensuring flexibility for long-term supply.
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Strategic Supplier Retention
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Despite competitive bids, the existing supplier offered the best combination of price, reliability, and stability.
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Retaining the incumbent supplier ensured no operational disruptions or onboarding risks.
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Metal Pool Strategy
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Opted into a metal pooling mechanism, a structured approach that major purchasers can utilize.
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After careful evaluation, we committed to locking in this pricing model, understanding that while aluminum prices could have dropped further, market indicators pointed to an increase.
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This decision mitigated exposure to LME volatility, leading to further cost reductions in the second year.
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Implementation & Execution
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Year 1 Savings: Achieved $2.3M in cost reductions without switching suppliers.
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Year 2 Optimization: As aluminum prices rose, the metal pool lowered costs further by $475K, despite the supplier’s ability to increase prices annually.
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Long-Term Stability: Secured a multi-year contract, ensuring predictable pricing and uninterrupted supply.
Results & Impact
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$2.3M in first-year savings with no supplier transition risks.
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Additional $600K reduction in Year 2 despite rising aluminum costs.
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No operational disruptions, ensuring continuous supply chain efficiency.
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Commodity Risk Mitigation through structured contract commitment.
Key Takeaway
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By leveraging a strategic RFP while retaining the incumbent supplier, the client secured long-term stability, reduced costs, and optimized contract terms—turning an industry-wide price surge into a competitive advantage.
Optimizing Finished Goods Distribution for a Leading U.S. Winery
Client Snapshot
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Industry: Major U.S.-Based Winery
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Objective: Improve distribution efficiency and cost savings while maintaining wine quality
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Annual Shipment Volume: 1.68M cases (12K pallets / 546 containers)
Background & Challenges
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The client shipped 1.68 million cases of wine per year via rail, amounting to 546 containers annually. While rail was a cost-effective solution, standard containers had temperature fluctuations, posing a risk to wine quality. Additionally, the fragmented distribution model presented an opportunity to optimize logistics and reduce costs.
Approach & Strategy
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Multi-Point Distribution Strategy
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Implemented a strategic finished goods distribution model, optimizing shipping routes across multiple U.S. distribution points.
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Improved logistics flexibility by reducing bottlenecks at single distribution hubs.
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Transition to Cryogenic Box Cars
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Negotiated and implemented Cryo Box Cars (temperature-controlled boxcars), which could hold four containers in one unit.
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This approach preserved wine quality by maintaining a stable climate, eliminating temperature-related risks.
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Rail Cost Optimization
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By consolidating shipments into larger capacity Box Cars, we significantly reduced the number of rail moves required.
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This strategy cut annual transportation costs by $420K while ensuring wine quality remained intact.
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Implementation & Execution
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Optimized Network: Distribution now flows through multiple strategic points, enhancing efficiency.
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Secured Wine Quality: Temperature-controlled Box Cars prevented exposure to fluctuating conditions.
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Achieved Cost Savings: $420K annual reduction in transportation costs without compromising service levels.
Results & Impact
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Reduced container usage by consolidating into Cryo Box Cars
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$420K in annual savings through logistics optimization
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Enhanced wine quality control with temperature regulation
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More flexible and resilient distribution network
Key Takeaway
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By shifting to temperature-controlled Cryo Box Cars and optimizing distribution points, the client secured wine quality, reduced costs, and improved overall supply chain efficiency—a best-in-class logistics strategy for premium wine transport.