Supplier Consolidation and Commodity Management

August 14, 2023

Customer Issue

Customer with 250+ label suppliers in North America

Poor quality and delivery metrics
No visibility of annual purchase value (APV) and demand
Rising costs across portfolio
Complexity cost: Excessive part numbers and specifications to manage

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

Assigned all commodity POs
100% plant audits for all customer facilities
Re-source or in-source labels from poor suppliers
Part review and consolidation
Spec review and consolidation to a single master spec
Value engineering – material and design optimization

Customer Benefits

Cost Savings

8% average annual savings for over 10 years
$2.2 million, 10 year cumulative

Productivity Gains

Eliminated >200 suppliers oversight
Spec consolidation from 25 to 1
Quality improvement >60%
Quality system compliance with suppliers meeting IATF or ISO requirements

Written By:

AWT Expert

Category:

Case Study

Posted On:

August 14, 2023

Collaborative Forward-Thinking Innovation

A global point-of-care (POC) diagnostics startup was preparing to launch an innovative new product but faced a critical production challenge. Their blood diagnostic tests featured a unique disc design, incorporating various sealing tapes and labels that required precise placement. The pressing question: could they maintain tight tolerances in positioning without triggering an unintended chemical reaction during the production process?

Major Changes Coming to How2Recycle Labels: Keeping You Up-to-Date

Using more traditional suppliers and methods, La Prenda would only order labels a handful of times per year in an effort to meet minimums. This was complicated by the dynamic needs of their customers, who were often looking for small lots and unique wines.

From Vision to Shelf: How Wild Mannered Used Packaging to Tell a New Brand Story

Using more traditional suppliers and methods, La Prenda would only order labels a handful of times per year in an effort to meet minimums. This was complicated by the dynamic needs of their customers, who were often looking for small lots and unique wines.

Written By:

AWT Expert

Category:

Posted On:

August 14, 2023

Updated On:

November 16, 2023

Customer Issue

Customer with 250+ label suppliers in North America

Poor quality and delivery metrics
No visibility of annual purchase value (APV) and demand
Rising costs across portfolio
Complexity cost: Excessive part numbers and specifications to manage

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

Assigned all commodity POs
100% plant audits for all customer facilities
Re-source or in-source labels from poor suppliers
Part review and consolidation
Spec review and consolidation to a single master spec
Value engineering – material and design optimization

Customer Benefits

Cost Savings

8% average annual savings for over 10 years
$2.2 million, 10 year cumulative

Productivity Gains

Eliminated >200 suppliers oversight
Spec consolidation from 25 to 1
Quality improvement >60%
Quality system compliance with suppliers meeting IATF or ISO requirements

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