$1M Saved Through a Supplier Switch

The client bought from many suppliers and manufacturers but had no formal process for sourcing. Without one, the team had no structured way to compare suppliers or test a quote against the market.

The gap showed most on specialty ingredients. A vitamin K2 ingredient appeared across several of the client's products, so its price carried real weight in the cost of the portfolio.

Our Approach

Izba built the sourcing process with the client's team, then ran it on a live purchase. We opened the opportunity to competing suppliers and compared the offers side by side on the same terms.

The K2 sourcing strategy was one of several supply projects Izba managed in the same period, alongside ginger powder qualification, label supplier diversification, and tariff exposure analysis. Each new supplier moved through the client's ingredient qualification process, which Izba supported with a monthly steering committee of Quality, R&D, sourcing, and procurement leaders, biweekly working sessions, an intake form, and tracked approvals.

The Outcome

• About $1M a year saved by switching the K2 supplier.
• A sourcing process the client can reuse on future purchases.
• A qualification pipeline for new suppliers, with a steering committee, an intake form, and tracked approvals.
• About $1.55M a year in combined savings counted as likely realized, when added to the 3PL switch in the next case study.