CHALLENGE

A prominent, founder-owned market leader in the fast-growing non-alcoholic beverage sector, particularly Kombucha, was expanding at over 30% annually. With rapid growth, the CFO identified an opportunity to optimize procurement processes and reduce costs to improve operating margins without disrupting the business. To address this, the company initiated a 6-week opportunity assessment to identify cost-saving areas and later launched a 6-month pilot program focused on strategic sourcing in key spend categories. The goal was to drive savings while building internal capabilities, supported by a procurement technology roadmap featuring tools like Coupa and Ramp.

OUR ROLE

• Sustain Market Leadership: Identify and implement strategies to maintain competitive advantage in a rapidly growing industry
• Supplier Partnerships for Innovation: Establish and strengthen partnerships with best-in-class suppliers to drive product innovation and differentiation
• Talent and Skills Development: Enhance procurement and supply chain capabilities through targeted skill development and talent upgrades

  SOLUTIONS

Developed a comprehensive spend cube to categorize procurement expenditures beyond accounts payable and general ledger.

Achieved cost savings through procurement spend optimization in four key areas:  

• Labels: $4.3MM savings
• Office Products: $69K savings
• MRO (Maintenance, Repair, and Operations): $440K savings
• Corrugated Materials: $110K savings

OUTCOME

• Successfully assisted in the recruitment and hiring of a new Senior Director of Purchasing
• Achieved over $5MM in supplier agreement savings during the Pilot Program
• Established partnerships with new suppliers offering advanced technology to enhance product support