15%
savings boost
31 days
to run the sourcing event
$165M
annual revenue
Client
The world's third largest cheese company, with $165 million in annual revenue. Industrial ingredient sourcing for large scale cheese production at the Wisconsin plant.
Requirement: wanted to source direct materials including diced peppers and puree from new suppliers.
Background
Proacure helped the client source pepper items optimally. Procurement for these items was costing approximately $1.2M.
Proacure's approach
Proacure opened the category to new suppliers through a live auction and created real price competition in a spend area that had relied on a narrow supplier base. Specifications were shared upfront so the client could compare qualified bids on a like-for-like basis.
Challenges addressed
- Supplier discovery and onboarding: Proacure was able to find and onboard 17 new suppliers.
- Data challenge: Proacure sorted and categorized 300 industrial ingredients to improve sourcing process.
- Supplier data collection: Proacure streamlined pricing and RFQ information collection and made it easier for suppliers to submit bids.
Outcome
The client added seventeen new suppliers and captured 15% savings on direct materials, turning a limited incumbent base into a competitive, repeatable sourcing outcome.