All case studies

Case study 02 · Commercial optimisation

85 percent lower unit cost through a redesigned sourcing model

I did not treat an everyday cost problem as a price negotiation. I redesigned the specification, supplier logic and commercial model.

Interim sales project lead · technical product business2015
~€2.00initial unit cost
~€0.30new unit cost
85%cost reduction
6 figuresrecurring savings
01

Situation

An established technical product business sourced a frequently used packaging item at approximately €2.00 per unit. The cost had long been accepted even though volume, specification and sourcing route were poorly aligned.

02

My role & responsibility

I led the commercial improvement project. My brief was not simply to renegotiate a price, but to create a durable solution and derive further commercial opportunities from it.

03

My actions

I broke down cost, function and supplier model and reset the service that was genuinely required.

  • I separated essential requirements from inherited specifications.
  • I broadened and reassessed the supplier base.
  • I negotiated from total volume, standardisation and business impact.
  • I then developed an adjacent CNC-based product concept.
04

Results

I reduced unit cost from approximately €2.00 to around €0.30 – an 85 percent reduction. This created material recurring six-figure savings.

This case study is fully anonymised. Company, client, mandate and location names are disclosed only in a confidential conversation.

Paul Fritz MendelBook an initial conversation
Book an initial conversation