You turn to Accordion.
We start by evaluating potential EBITDA enhancement and within one week of engagement, provide 25 specific action items that will not only help you meet your $850K savings projection but will actually far exceed your goal, to the tune of over $6M (in commodity sourcing and packaging savings), and another $1-3M (in pipeline opportunities).
And then we partner with you to actually produce the savings:
- Analyzing commodity contracts and quotes to identify spending patterns and negotiation avenues.
- Leading supplier negotiations to minimize contractual risk and optimize volumes for cost savings.
- Evaluating plant operations and distribution to streamline and remove redundant facilities.
- Crafting an operational due diligence questionnaire to uncover procurement efficiencies.
- Pinpointing potential risks and gaps to enhance the sourcing strategy and dashboard metrics.
- Developing a usage mix for select commodities factoring in 19+ variability dimensions.
- Holding comprehensive meetings to guide plant managers on procurement strategies and usage tracking.
- Proposing capital investments to bring key commodity sourcing in-house, assessing construction bids.
Your value is enhanced.
You successfully realize ~$10M in cost savings. A large part of these savings come from better procurement of raw materials ($8M in savings), while a smaller percentage coming from indirect-COGS ($1.7M in savings). What’s more, you have solidified a plan to secure essential commodity volumes ahead of schedule, developed a detailed list of synergy targets, and created a business case for each savings initiative.
You’re so happy that our partnership has created savings well beyond projections that your COO also asks us to design an S&OP model and strategy for maintaining stock levels – something we project will lead to an additional $2M in extra savings.