Napkin and tissue manufacturer

Overhead categories (utilities, packaging, telecom, waste) had never been benchmarked. A year later a second opportunity surfaced in the raw material itself.

• Utilities, including a sales-tax exemption filing
• Packaging materials
• Telecom
• Waste removal
• Recycled paper stock (Phase II)

• Phase I audited utilities, packaging, telecom, and waste.
• We filed a utility sales-tax exemption that triggered a retroactive refund.
• Phase II repriced recycled paper stock. The incumbent was well above market once freight was included.
• A competing mill's delivered price beat the incumbent's ex-freight rate.
• Waste was rebid to a competing hauler. Packaging consolidated to a lower-cost supplier. Telecom was renegotiated on the existing agreement.

Raw paper stock

~21% savings

New mill's delivered price beat the incumbent's ex-freight cost

Waste removal

~28% savings

Rebid to a competing hauler

Packaging materials

~10% savings

Consolidated to a lower-cost supplier

Telecom

~17% savings

Renegotiated the existing agreement

Utilities

~6% savings

Rate audit plus a sales-tax exemption filing

Phase I recurring

~$10,400/yr

One-time utility tax refund

~$8,300

Phase I 5-year value after fees

~$41,600

Phase II recurring

~$31,000/yr

Phase II 5-year value after fees

~$149,000

Combined recurring impact

>$41,000/yr

1. 01

   The audit went past overhead into cost of goods

   Repricing the raw material delivered three times the annual savings of the entire first phase.

2. 02

   A tax filing paid for itself

   The sales-tax exemption was a compliance opportunity nobody had filed for.

3. 03

   Zero disruption to production

   New stock met the same specs for basis weight, reel width, and ply.