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     Contract Food Manufacturer Success Story

    Driving stakeholder collaboration to co-create value and competitive differentiation across the value chain

A collaborative TVO approach drove a win-win-win-win for key stakeholders

The challenge

This private equity-owned client is a leading manufacturer of healthy snack bars and private-label nutritional brands. The company operates as a third-party manufacturer, working in partnership with clients which include some of the world’s best known and most successful brands.

Nearing the end of the investment lifecycle, the PE firm needed to see rapid EBITDA and growth improvement in spite of declining revenues. Both the PE firm and the company’s leadership recognized the need to improve supply chain maturity, reduce material costs and develop appropriate benefit sharing with customers. Both wanted to strengthen the value of the company’s intermediation by offering brands and suppliers better value and visibility than they could otherwise achieve.

This story is for private equity firms and company CEOs who are seeking to:


  1. Become a world-class organization and develop their supply chain into a competitive weapon
  2. Build a common structure and process for the recurring requirements of the existing business and develop a platform for growth in preparation for acquisition
  3. Become the supplier of choice by delivering cost savings and demonstrable value-added supply chain services to their customers
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Building a collaborative end-to-end supply chain

Our industry and subject matter experts worked closely with the established client team. We looked for solutions that would deliver sustainable wins to the PE firm, our client (the co-manufacturer), brands and suppliers including:

  • Using advanced data analytics to create a mature digital supply chain network with visibility across the supply chain and the ability to plan forecast demand
  • Implementing a strategic sourcing process to reduce material costs and enable growth
  • Developing appropriate benefit sharing programs with customers to position the company as a preferred supplier
  • Implementing corporate supply and transportation agreements that support the needs of the organization
  • Deploying our LOI specialists to train and mentor key team members and key stakeholders in strategic procurement processes and associated techniques to support the corporate procurement vision and create repeatable, sustainable benefits
  • Conducting a focus and alignment session to define a clear ORCI® for the corporate and local procurement organizations
  • Conducting a supplier forum to reinvigorate the supplier community and help them better understand the benefits our client brings to them in terms of scale and supply chain maturity

The systems and processes we helped implement enabled our client to take control of customer and supplier relationships and position themselves as the primary owners of the digital, demand-driven supply chain solution.

 

The results

Taking a holistic, Total Value Optimization™, approach Maine Pointe worked closely with its client and key stakeholders to:

  • Reduce materials costs by 13%
  • Reduce transportation costs by 15%
  • Drive stakeholder collaboration
  • Create value and competitive differentiation across the value chain
  • Position our client as the primary owner of the digital, demand-driven supply chain solution
  • Enable growth by establishing the company as a preferred supplier
  • Improve EBITDA by 32%
  • Deliver a ROI of 6:1
 
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 Significantly improving the supply chain

“I would recommend Maine Pointe to any company looking to significantly improve their supply chain service offering and to enhance the overall effectiveness of their company.”  - CEO

 

 

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  • Creating a win-win-win-win requires collaboration and integration throughout the value chain
  • Maturing an organization’s supply chain can create significant EBITDA opportunities
  • Realizing anticipated M&A synergies begins with having a refined platform to enable and accelerate growth

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