Case Study 2: PBS helped a renowned food company to provide savings of over 9% for its packaging spend of Flexible and Rigid plastics.
A renowned Food manufacturing and marketing company located in Punjab and since its inception, the company has not only expanded its product line but also maintained quality through the years to become one of the largest food companies in the country.
Today the company is among the market leaders in all its product categories. Not only that, it is exporting its products to UK, USA, Canada and Middle-East.
The company’s senior management wanted to improve performance of procurement and secure cost saving for the business.
The task was given to Packaging Business Solutions to look into and advise necessary improvement for its packaging portfolio. PBS studied the packaging material portfolio comprising of Flexible and Rigid Plastics categories. PBS delivered a cost saving of over 9% through revision in specifications and negotiations based on cost model with company suppliers.
Furthermore, to help improve Quality of incoming supplies and receive the packaging that is required and not just what supplier wants to supply and to measure suppliers’ Performance, PBS after a detailed study, developed packaging materials specifications across all material categories and implemented.
In addition PBS involved the procurement team in the process to help improve their knowledge and skills at every stage of the project besides conducting a packaging course for the team to help gain insight of packaging materials, processes, suppliers and supply market and cost based negotiations.
This project helped the company improve its procurement team’s understanding of packaging –purchasing, quality and negotiations besides a tangible saving of over 9% for its packaging spend.