Supply Chain Optimization

$119M Consumer Health Products Manufacturer

Background

  • Medical grade private-label skincare manufacturer founded in 1981
  • Leading skincare provider serving dermatologists and physicians worldwide
  • Unique proposition pairs science-backed, efficacious skincare with proven practice building principles
  • Provides physicians and skincare experts with innovative safe and effective products

Contributions

  • Completed supplier negotiations through SRM with top-10 raw chemical suppliers
  • Held a top-50 chemical e-source event to drive a competitive pricing strategy
  • Implemented a transportation program and travel policy to centralize the spend
  • Addressed indirect spend through e-sourcing of temporary labor, packaging, and labels
  • Leveraging private equity offerings in major indirect categories such as maintenance repair and operations (MRO), shipping, travel, IT, and lab supplies

Results

  • Executed an annualized savings of $4.3M and a ROI of 5.9×2
  • Direct savings in chemicals packaging freight totaling $3.6M
  • Indirect savings in various spend categories totaled $700K
  • Exited the project in 5 months, which was 1 month ahead of plan
  • Improved working capital by extending pay terms on 14 suppliers, totaling a $515K cash improvement
  • Developed travel and entertainment policy