Sourcing Support Reduces COGS by 40% and Improves EBITDA Amid Financial Challenges

Manufacturer of liquid fill products serving global brands and retailers

The Challenge

A leading wet wipes manufacturer sourced most of its supply chain in the US but recent acquisitions increased sourcing from India and China. The client enlisted TriVista’s support to cut overall material costs by potentially shifting additional categories to low-cost countries (LCC).

Our Approach

• Assessed detailed costs of the current supply base, including existing sourcing criteria.
  • Identified key cost drivers of the category and/or product
  • Developed an understanding of the categories suitable for resourcing in low-cost countries and created category strategies
  • Understood the specific requirements and technologies needed within those categories
  • Considered sourcing requirements, such as fabric slitting and bamboo raw material
  • Analyzed manufacturing processes and requirements, including specific resin grades and fabric types
  • Examined regulatory processes and requirements (FDA and EPA)
• Developed LCC sourcing criteria, including the RFP/RFQ process
• Documented the LCC sourcing strategy
• Researched and identified candidate suppliers in LCCs
• Created and documented the RFI/RFQ process, distributing it to candidate suppliers
• Evaluated responses from candidate suppliers based on established criteria
• Visited shortlisted suppliers to validate capabilities, processes, and quality
• Facilitated the final supplier selection process for each category

The Results

• Identified the highest cost reduction opportunity within the raw fabric category.
  • Achieved a 40% reduction in material cost, resulting in a multi-million annual savings opportunity across the top 5 SKUs
  • Identified and evaluated over 15 suppliers through the RFI, RFQ, and down selection process
  • Qualified 3 unique suppliers through the sample evaluation process