Cost Reduction & Vendor Management

5 Places CPG Companies Are Leaving Money on the Table 

Most supply chain cost savings aren't hidden in complicated analysis — they're sitting in overlooked vendor contracts, excess inventory, and inefficient processes.

I've spent 15 years working inside CPG supply chains, and I can tell you with confidence: almost every company I've worked with had significant cost savings hiding in plain sight. 

Not because they weren't smart — but because when you're busy running the business, it's hard to step back and see where the leaks are. Here are five of the most common places I find money sitting on the table. 

1. Vendor Contracts That Haven't Been Renegotiated 

If you haven't revisited a key supplier contract in two-plus years, you're almost certainly overpaying. Markets shift, your volumes change, and your leverage grows as your business grows. Most suppliers expect to be asked — and many will move on price, terms, or both if you approach it the right way. 

2. Freight Costs Without a Real Strategy 

Shipping decisions made deal-by-deal or carrier-by-carrier add up fast. Consolidating volume, locking in rates, and building carrier relationships can meaningfully reduce freight spend — often without sacrificing service levels. 

3. Carrying Too Much (or Too Little) Inventory 

Excess inventory ties up cash and increases the risk of obsolescence. Too little inventory causes stockouts and rush orders that cost a premium. Getting inventory optimization right is one of the highest-ROI supply chain improvements most companies can make. 

4. Packaging Spend Without Vendor Competition 

Packaging is one of the largest cost buckets in CPG — and one of the most under-negotiated. If you're working with a single packaging supplier without regularly benchmarking the market, you're probably leaving money behind. 

5. Manual Processes That Eat Time and Create Errors 

Time is money, and manual workflows — especially in PO management, invoicing, and reporting — create both cost and risk. Streamlining these processes often pays for itself quickly in labor savings and error reduction. 

The good news: none of these are unsolvable. In most cases, a focused 60–90 day review can identify significant savings. If any of these resonate with what you're seeing in your business, reach out — I'd love to dig in.