Case study

NOVEMBER 2019

Cost reduction program on 6 white-label Purchasing categories

European leader in private label biscuits, which was bought out at the beginning of 2007. Multi-site group, partly built through external growth.

The Client

The European leader in manufacturing biscuits for private labels was bought out by a multi-site Corporation that was developing through external growth.

Context

Facing the effects of both a significant increase in the price of agricultural raw materials and a substantial increase in its production (strongly affected by the economic crisis), the company wanted to reduce its purchasing costs to be able to preserve its profit margins.

CKS was mandated to study opportunities to reduce costs of all the company's expenditures except for raw materials and to cut costs wherever possible.

After an audit, CKS proposed a cost reduction program on the 6 most opportune categories:

Objectives

For the complete duration of the mission, CKS mobilised a team of eight consultants some of whom possess in-depth expertise in particular fields (Cleaning, Energy, Packaging).

Resources

The solution was to bring all the purchasing teams closer together and to closely ally them to the Clients' Core-business management. The process took place in 6 main stages:

For each of the categories the process took between 3 and 6 months. A number of the categories could only be addressed one after the other.

Results

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