Cutting Costs for a Multibillion-Dollar Food & Industrial Products Leader

food industrial plant worker

Client Snapshot

A $2 billion-dollar global food and industrial company with more than 100 years of history was seeking cost savings to support continued growth. They identified reducing the total cost of ownership for light industrial services as a key lever to fuel expansion and free up capital for strategic investments across the business.

The Challenge

The company faced several obstacles in optimizing its supply chain from a commercial perspective:

  • Limited visibility into light industrial services resources and spending
  • Minimal reporting on supplier performance
  • Reliance on a local supply base with a shortage of skilled tradespeople
  • Annual cost increases passed through from suppliers
  • Competitive bidding was delayed for several years due to the Covid-19 pandemic

The Approach

WG Consulting partnered with the client to reduce the total cost of light industrial services at the plant level while refreshing the supplier base and enhancing reporting capabilities for supplier performance management.

Key initiatives included:

  • Conducted a comprehensive assessment of plant and labor services across U.S. operations
  • Leveraged market intelligence to identify and evaluate potential new suppliers
  • Managed a competitive RFP process for $80M in services
  • Recommended a future-state supplier strategy and supported change management
  • Executed contracts with KPIs and volume rebates benefiting the client

The Result

WG Consulting Business Transformation Services practice enabled the client to realize:

  • Approximately $5M in annual cost savings
  • Embedded volume rebate structures and reporting requirements in awarded contracts
  • Stronger internal alignment on contracting standards and change management
  • Expanded access to qualified tradespeople

Why WG Consulting?

WG brings deep expertise in designing and executing effective supply chain strategies. As demonstrated in this and other case studies, WG has partnered with leading organizations to modernize procurement, deliver sustainable cost savings, and strengthen compliance through strategic commercial frameworks.