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Shared Service Center Case Study: $1M Net Savings for a $50M CPG Company
A $50 million CPG company was burdened by a $1.31M fully onshore finance and logistics structure that constrained scalability and pressured margins.
Gaps in CPG trade and deduction expertise further increased margin risk, prompting leadership to pursue structural redesign over incremental cost cuts.
Learn how this was achieved.
The Challenge: Rising Overhead, Fragmented Functions, and CPG Skill Gaps
A $50 million CPG company was operating with a fully onshore finance and logistics structure. While functional, the model carried high fixed payroll costs, overlapping responsibilities, and increasing margin pressure.
The total annual cost of the finance and logistics function stood at $1,311,000, limiting scalability relative to revenue size.
Compounding the issue was a shortage of CPG-specific expertise, particularly in trade promotions management. Trade spend accuracy, deduction tracking, and promotional accrual oversight require specialized industry knowledge. The company struggled to recruit and retain professionals with deep CPG trade experience, increasing the risk of margin loss.
Leadership recognized the need for structural redesign rather than incremental cost reductions.
Industry
CPG
Company Size
$50 million
Location
New York & Connecticut, U.S.
Sign Up To Cut Accounting Costs by 60%
Our Approach: Transition to a Shared Service Center Model
We implemented a Shared Service Center model designed to reduce unnecessary management layers while maintaining strong strategic oversight.
Below is the organizational realignment that made this possible:
Organizational Realignment
Role | Action | Status | Incremental / (Savings) |
CFO | No Change | Strategic Oversight Maintained | $ – |
Assistant Controller | Promoted | Elevated to Controller | $15,000 |
Inventory & Logistics Supervisor | Promoted | Elevated to Manager | $10,000 |
Accounting & Trade Manager | Offshore | SSC with CPG Expertise | $(151,600) |
Controller | Retired | Role Eliminated | $(198,700) |
Logistics Manager | Consolidated | Automation Introduced | $(159,200) |
Accountant – Order Entry & Invoicing | Offshore + Automation | SSC Model | $(90,300) |
Accountant – Cash Application | Offshore | SSC Model | $(80,760) |
Accountant 3 & Logistics Coordinator | Role Optimization | Structural Realignment | $10,000 |
Financial Impact:
Original Annual Cost
$1,311,000
Total Role-Based Cost Reduction
$(645,560)
Gross Reduction Percentage
49%
The company originally spent $1,311,000 per year on its finance and logistics function. Through organizational realignment and structural changes, it reduced role-based costs by $645,560 annually.
This represents a 49% gross reduction in the original cost structure, nearly cutting the function’s overhead in half before accounting for reinvestment into the Shared Service Center.
Offshore Transactional Finance Functions
Transactional finance activities were offshored to Expertise Accelerated as the Shared Service Center. This resulted in an annual offshore investment of $121,200, significantly lower than the previous fully onshore cost structure.
Net Annual Savings: = $645,560-$121,200 = $524,360
Net Cost Reduction= 40%
Operational Enhancements
Our model helped the company:
Introduce automation in logistics and order management
Promote high-performing internal talent into expanded leadership roles
Add CPG-specialized expertise in trade promotions and deduction management.
Stronger controls over trade and deductions delivered further measurable benefit:
Control Enhancement | Annual Impact |
Customer Chargeback Claims Recovered from Retailers | $300,000 |
Logistics Deduction Recoveries | $50,000 |
Accounts Payable Discount Capture (Timely Payments) | $80,000 |
Total Additional Benefit | $430,000 |
Performance Snapshot
Role Cost Savings
$645,560
SSC Investment
$121,200/ year
Payroll Savings
40%
Payback Period
< 3 months
Results
Expertise Accelerated’s team helped the client company implement the shared service model that resulted in:
- 40% reduction in overhead
- Strong trade promotions oversight and deduction governance.
- Access to CPG expertise that improved working capital performance and created a scalable finance infrastructure aligned with growth.
This initiative demonstrates that for mid-market CPG companies, a Shared Service Center can be both a cost transformation strategy and a margin protection engine.
Total Combined Annual Financial Impact | |||
| Category | Amount | ||
| Net Structural Savings | $524,360 | ||
| Additional Margin & Discount Gains | $430,000 | ||
| Total Annual Financial Benefit | $954,360 | ||
For a $50 million CPG company, nearly $1 million in annual financial impact represents a material EBITDA expansion. | |||
Discover how your company can implement a Shared Service Center model to achieve operational excellence, streamline processes, and unlock the efficiency once reserved for large multinationals.
Explore your options with Expertise Accelerated as a trusted shared service center today.
