food-processor-trims-supplier-relationships - Bain & Company

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Case Study

Food processor trims supplier relationships

A large food processing company suffered from an inefficient supply chain and high-cost packaging materials. The company asked Bain to analyze how a Value Managed Relationship could save money and improve efficiencies. We recommended focusing on two key suppliers, which resulted in a 19 percent reduction in costs.

  • min read

At a Glance

  • 19% cost reduction

The Full Story

The Situation

SweetCo* wanted to streamline its supply chain to control the high cost of packaging materials.

  • SweetCo is a large food processing company suffering from an inefficient supply chain 
  • The client was especially concerned about the high cost of packaging materials 
  • SweetCo asked Bain to analyze how a Value Managed Relationship could help the company realize cost savings and improve efficiencies


Our Approach

Bain determined the potential of a Value Managed Relationship with high-volume, high-value suppliers.

Our Recommendations

Focusing on two key suppliers simplified transactions and slashed costs.

 

The Results

Through Value Managed Relationships with key suppliers, SweetCo significantly reduced costs in its supply chain.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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