Results & Case Studies
Real-world examples of how procurement, cost analysis and supplier management can create measurable financial impact.
$1M Annual Savings Through Strategic Sourcing & Reshoring
The Challenge An automotive manufacturer was facing significant annual costs within a key purchased component category, combined with supply-chain exposure associated with an offshore supplier. The Approach Iceberg CM’s founder led a strategic sourcing initiative that evaluated the total cost of the existing supply arrangement, assessed alternative suppliers, and explored opportunities to move production closer to the customer. The initiative included supplier negotiations, competitive sourcing, cost analysis, and evaluation of the operational and supply-chain implications of reshoring the business. The Result The project delivered approximately $1 million in annualized cost savings while successfully reshoring the supply to a domestic supplier. This created both a significant recurring financial benefit and a more localized supply base, reducing reliance on offshore supply. Key Outcomes ~$1M annualized savings Supplier reshored domestically Reduced offshore supply exposure Improved alignment between cost and supply-chain strategy Established a more competitive long-term sourcing arrangement
Improving Warehouse Flow Without Capital Investment
The Challenge A greenhouse operation was experiencing inefficiencies in its warehouse, including unnecessary movement of growing materials, repeated inventory counts, and excessive handling of products and supplies. At the same time, increasing amounts of stagnant and slow-moving inventory were taking up valuable warehouse space. The Approach Working with the client we redesigned the warehouse layout and material flow using the company’s existing space, storage equipment, and material-handling resources. Materials were reorganized based on usage, frequency of movement, and operational requirements, creating a more logical flow through the warehouse. The revised layout reduced unnecessary material touches and helped eliminate duplicate counting activities. The redesign also created greater visibility of stagnant and slow-moving materials, allowing the greenhouse team to identify excess inventory and address it before it continued to consume valuable space and working capital. The Result The redesigned warehouse improved material flow, inventory visibility, and day-to-day efficiency without purchasing additional material-handling equipment or disrupting greenhouse operations. Key Outcomes Reduced unnecessary material handling Reduced duplicate inventory counts Improved warehouse layout and material flow Increased visibility of stagnant and slow-moving inventory Better utilization of existing warehouse space and material handlers time Improved inventory control No additional material-handling equipment required No disruption to daily operations
Savings Through Process Optimization
The Challenge A manufacturer was purchasing a material in smaller quantities at a higher unit cost. The Approach We identified that the product could be purchased by the company in significantly larger quantities. By analyzing the material requirements and existing purchasing patterns, an opportunity was identified to consolidate the material source and bring the slitting process in-house. The proposed solution created enough savings to support a dedicated internal position responsible for the slitting process, while the role only needed to be performed on a bi-weekly basis. The Result The revised sourcing and processing strategy reduced the overall cost of the material by approximately 20%, while creating an internal capability that reduced reliance on the external slitting process. Key Outcomes ~20% cost savings Identified an opportunity through cross-product analysis Consolidated material purchasing opportunities Used existing in-house slitting capabilities Created a new position funded by the identified savings Reduced reliance on external processing Created a sustainable, internally controlled cost advantage
Maintaining Pricing for Over Four Years
The Challenge A manufacturer faced ongoing pressure from rising labour, material, and operating costs that could have resulted in repeated supplier price increases for a key purchased item. The Approach We worked collaboratively with internal teams and the supplier to identify opportunities for continuous improvement throughout the product and supply process. The initiative combined supplier negotiations, internal process improvements, and Lean principles to identify and eliminate waste, improve efficiency, and offset underlying cost increases. Rather than treating each supplier increase as a separate negotiation, the focus was placed on continuously improving the overall cost structure and creating sustainable efficiencies. The Result The company was able to maintain the existing price for more than four years without an increase, despite ongoing cost pressures. Key Outcomes 4+ years of price stability Offset underlying cost increases through continuous improvement Implemented Lean principles to reduce waste Improved supplier and internal process efficiency Established a sustainable approach to cost control Reduced reliance on repeated price negotiations
Meeting Customer Pricing Targets
The Challenge An automotive supplier was under significant pressure to meet a customer-driven target price. Simply negotiating with the customer or supplier was not enough to close the gap without putting the supplier’s margins and competitiveness at risk. The Approach We worked with the supplier to address the cost gap from multiple angles. The initiative combined hard supplier and customer negotiations with product redesign and material optimization. The product was reviewed to identify opportunities to use materials more efficiently, reduce material consumption, and eliminate unnecessary cost from the design. By addressing both the commercial terms and the underlying product cost, the supplier was able to create additional savings rather than relying solely on price concessions. The Result The combined sourcing, negotiation, and product optimization efforts enabled the automotive supplier to meet the customer's pricing requirements while significantly reducing the material cost per item. Key Outcomes Achieved customer-driven pricing requirements Significantly reduced material cost per item Improved material utilization Identified product redesign opportunities Combined commercial negotiation with technical cost reduction Protected supplier competitiveness and profitability
Rebuilding a Supply Chain During a Plant Closure
The Challenge A manufacturing company faced an emergency plant closure that threatened its ability to maintain normal production and created significant risk of packaging and material disruptions. At the same time, suppliers were seeking substantial price increases driven by COVID-era commodity, transportation, and input-cost pressures. The company needed to protect supply continuity while managing rapidly increasing costs. The Approach Iceberg CM helped redesign the company’s supply chain to maintain material availability and minimize packaging disruptions during the plant closure. The initiative included reviewing the supplier base, identifying alternative sources, consolidating suppliers where appropriate, and strategically sourcing requirements between existing and new suppliers. In parallel, supplier negotiations were conducted using commodity and market-based pricing analysis to distinguish legitimate cost pressures from broader price increases. This provided a fact-based foundation for negotiations and helped offset or significantly reduce supplier-requested increases. The resulting strategy balanced cost, supply continuity, capacity, and supplier risk rather than focusing solely on unit price. The Result The company was able to navigate a significant supply-chain disruption while maintaining the availability of critical packaging and materials. Supplier negotiations and commodity-based cost analysis also helped offset or substantially reduce COVID-related cost increases. Key Outcomes Minimized packaging and material supply disruptions during an emergency plant closure Redesigned the supply chain to improve resilience Reduced and consolidated the supplier base where appropriate Maintained fulfillment requirements while changing sourcing strategies Developed strategic sourcing opportunities with existing and new suppliers Used commodity-based analysis to support supplier negotiations Offset or significantly reduced supplier price increases Improved visibility into supplier cost drivers and market conditions