Case study

Pre-merger support for a consumer products manufacturer

Situation

A consumer goods manufacturer planning a merger hired a consultant to re-affirm top-down estimated cost savings in purchasing and to prepare for faster cost synergy realization after the deal is approved. Delivery Partners assisted the consultant with needs assessment, spend and supplier analysis, and sourcing strategy development.

Our work

Needs assessment:

  • Confirmed user requirements
  • Developed spend pool definition
  • Understood industry and supply markets

Spend and supplier analysis:

  • Identified qualified suppliers
  • Determined supplier value-added capabilities
  • Developed supplier “short list”

Sourcing strategy

  • Assessed bargaining position
  • Evaluated alternative strategies

Results

  • The company’s original top-down savings target increased by 30% after the bottom-up assessment of best prices and practices
  • The bi-directional savings were realized faster than normal, with initial savings hitting the bottom line within weeks rather than months