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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 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.

      * Levamos a confidencialidade de nossos clientes a sério. Embora os nomes tenham sido alterados, os resultados são reais.
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      Upper-income earners seem to be adopting a defensive position but are not yet reporting negative spending intentions.

      Read more

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