OLIPOP health prebiotic soda needs healthy margin enhancement support ​

Picture this...

You’re OLIPOP, a health drink company focused on offering thoughtfully-drafted tonic that finds its taste in wholesome, hardworking ingredients. You’ve been experiencing significant revenue growth year-over-year, with projections of doubling your business in the next two years; in 2023, your annual revenue is $130M (with run rates up to $260M), and you plan to reach $335-$380M in 2024. That said, you’re currently running under a 30% margin. To get to your 50% goal, you need help, as your current plan is not well organized and your contracts have not been updated; many of your vendors are still operating under contracts that were developed when your company was at <$50m in revenue. ​

You turn to Accordion.

We partner with your team to:​

• Review your margin enhancement plan and identify gaps​
• Complete a Network Capacity Study to determine supply chain efficiency and scalability​
• Review top 25 vendors and prioritize them based on spend, capacity, terms, prepayments, supply risk, distributor/direct source, and against company growth objectives​
• Create an action plan based on vendor priority to reduce cost and quantify savings, as well as negotiate contracts and pricing directly with the vendors ​
• Review procurement, coman, and warehouse contracts to improve agreement structure, working capital, material supply, and flexibility​
• Develop a new roadmap to achieve 50% by 2024—a whole year ahead of schedule​

Your value is enhanced.

You successfully accelerate the 50% margin by a full year, identifying $35M in cost savings, increasing all contract terms to N30+, removing all prepay agreements, and implementing a network optimization strategy that’s based on a 2-day delivery to customers and 3PL (with the ultimate goal of achieving $300M in revenue). ​

Before the engagement even closes, you achieve $15M in savings.