Multinational Cosmetics Manufacturer saves $13.3M Annually through Cost Cutting and Restructuring

A multinational manufacturer of cosmetics, skincare, fragrances, and personal care products

annualized savings
saved through contract renegotiation


Our client’s expenses were rising rapidly, despite a consistent decrease in revenue from their manufacturing operations. The procurement department was understaffed and unable to handle the demand for new vendors.  

These financial and operational problems were impacting product quality and customer retention. 


Our team completed a rapid analysis of over $250M in expenditures to identify opportunities for performance improvement through cost reduction and process workflow restructuring. Our team also negotiated with vendors on behalf of the procurement department due to high turnover in this department. We supported critical operations through the turmoil and implemented long-term improvement opportunities including:

  • Increasing expenditure visibility by implementing a new expense analytics platform, SOP’s, and training
  • Reducing procurement costs by renegotiating contracts in Small Parcel, Air Freight, Pallets and Uniforms
  • Decreasing overall expenses by developing a new CapEx policy based on industry best practices and revenue levels
  • Supporting business continuity by onboarding senior new hires during a period of instability and high turnover

Value Created

Our client realized immediate financial benefits including:

  • $13.3M in annual savings through expenditure reductions and guardrails
  • $2.1M in annualized savings through renegotiation of logistics contracts
  • $790K in annualized savings through renegotiation of facilities management