From Post-Bankruptcy Cost Pressure to Procurement Transformation: Delivering $14M in Savings for a Leading Food & Entertainment Brand
Driving category excellence, supplier conditioning, governance, and spend visibility for sustainable margin improvement
This story is for CEOs who
- Require rapid cost improvement following organizational disruption or restructuring
- Need greater control of spend, specifications, and supplier performance
- Operate in complex Food & Beverage or entertainment supply chains
- Seek sustainable procurement capability beyond short-term savings
The Challenge
A leading Food & Entertainment company emerged from bankruptcy during a period of heightened commodity volatility and margin pressure. Although the CEO had stabilized the business operationally, procurement processes lagged behind the needs of a modern, multi-brand enterprise.
The organization faced limited spend visibility, inconsistent sourcing practices, decentralized indirect procurement, and long-standing supplier relationships without formal expectations. A lean procurement team and recently promoted VP of Procurement were committed to improvement but lacked bandwidth and structured tools to execute at scale.
The company required a partner who could unlock immediate savings while enabling long-term procurement discipline, data visibility, and cross-functional alignment.
Maine Pointe:
- A unified spend cube consolidating data from disparate systems
- Standardized category taxonomy and visibility into spend patterns
- Installation of PMOS to govern procurement workflows and initiative reporting
- Defined ORCI and clarified internal roles, responsibilities, and decision rights
- Introduction of supplier conditioning expectations and SRM fundamentals
- Supplier forums and QBR frameworks to strengthen transparency, accountability, and innovation
- Execution of sourcing strategies across major Food & Beverage, Indirect, Merchandise, and Distribution categories
- Sampling, testing, inventory analytics and burn-downs, and risk-managed implementation plans
- Identification of future VAVE opportunities totaling $1.5M–$3M
- Leadership & Organizational Improvement session supporting long-term capability buildingbility
The Results
- $14M in annualized savings (exceeding the original $8–$10M projection)
- $11.5M corporate benefit and $3–$4M in franchise benefit
- Additional $1M in value identified through project extension
- $1.5M–$3M in VAVE pipeline opportunities
- Procurement maturity increased from ~1.0 to nearly 3.0
- Enterprise-wide spend cube created, establishing unified data visibility
- PMOS installed to support governance, reporting, and execution discipline
- SRM foundation implemented to strengthen supplier transparency and accountability
- Improved product consistency and reduced cost variability through stronger specification control
- Aligned corporate–franchisee sourcing strategies to unlock shared value
- Introduction of GPO partners to outperform indirect spend benchmarks