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Citrus Fruits

Sourcing Desk & Should-Cost Modeling

Sourcing engagement for a Midwest food distributor

Scope:

  • $120M of food, beverage, and packaging spend

  • Sourcing desk model with weekly CFO governance

Approach:

  • Stood up a sourcing desk with defined process, KPIs, and a weekly governance cadence with the client CFO

  • Built index-based should-cost models (USDA, CME, UB, CPI) to anchor negotiations against real market movement

  • Applied AI-enabled market intelligence to generate sourcing insights and challenge supplier pricing in real time

Result:

  • $11M in savings on $120M of managed spend within the first year

  • Data-driven negotiation approach anchored in commodity market indices

  • Repeatable sourcing desk model the client can run going forward

 

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