---
title: $8M a Year and 22% Off Packaging Spend | Trans-Solutions
description: A global agricultural food producer consolidated six packaging vendors and over 600 SKUs into a champion/challenger model, cutting 22% and $8M a year.
image: https://trans-solutions.com/hubfs/agricultural%20food%20production%20and%20distribution-1.webp
---

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# $8M a year and 22% off packaging spend for a global agricultural food producer

Category Management Food & beverage

Carriers:

Landsberg Westrock International Paper

![Packaging category management case study](https://trans-solutions.com/hubfs/agricultural%20food%20production%20and%20distribution.webp)

CONTENTS

- [Who](https://trans-solutions.com/case-studies-packaging-category-management-savings#who)
- [Problem](https://trans-solutions.com/case-studies-packaging-category-management-savings#problem)
- [What we did](https://trans-solutions.com/case-studies-packaging-category-management-savings#what-we-did)
- [Results](https://trans-solutions.com/case-studies-packaging-category-management-savings#results)

WHO

## Business model

A global leader in agricultural food production and distribution, buying corrugated and rigid plastics packaging across many business locations.

## Industry

Food and beverage. Trans-Solutions has been a trusted provider of subject matter expertise to this client.

PROBLEM

## What they felt

In 2022, the client initiated significant cost-cutting initiatives in the areas of corrugated and rigid plastics packaging.

## What we found

- 6 different vendors, over 100 corrugated SKUs, and over 500 non-corrugated SKUs
- Largest supplier had no agreement in place
- Lack of enterprise-wide spend visibility and access to contracts
- Unfavorable vendor contracts and cancellation penalties
- Inconsistent price escalator and de-escalator language and terms across suppliers

The goal was to centralize service providers across all locations and standardize the delivery of goods in order to achieve savings and create transparency.

WHAT WE DID

## Prep and analysis

 We established client goals, expectations and data requests during kick off meetings with stakeholders, followed by a complete holistic assessment of category dynamics, utilization and KPIs, then in-depth usage analyses that identified potential cost savings for each packaging category.

## Execution and coaching

Trans-Solutions negotiated multiple implementation options for each spend category, then guided the client in selecting customized implementation options. We negotiated a final pricing plan and contract with new providers, including direct manufacturers, and optimized contractual terms to ensure maximum long-term benefit.

## We built the function, not just the deal

The client did not have a category management function for packaging. We established one, so the savings do not leak back the next time contracts come up.

RESULTS

## What they got

**22% cost reduction and $8M a year, consolidated into a champion/challenger model**

A 22% cost reduction and $8M in savings a year, with spend consolidated into a champion/challenger model.

Post implementation the client had improved visibility and control of key suppliers, and a new process for onboarding and purchasing across all business locations. Standardized terms and conditions favor the client, coterminous agreements maximize leverage for future RFPs and pricing exercises, and costs now carry detailed visibility and increase and decrease mechanisms that track with market indices.

## How long it took

8 months total, with negotiations over 3 months.

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- [![transportation cost reduction case study: producer of high-performance minerals](https://trans-solutions.com/hubfs/e38da7b64d5deca037a3d9a05f6af8078bccadc7.webp) $500K a Year From a Low-Margin Supply Chain Redesign →](https://trans-solutions.com/case-studies-manufacturing-supplier-margin-improvement)

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- [Vendor & TMS Selection →](https://trans-solutions.com/services-vendor-tms-selection)

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