Collaborating with Distribution to Generate $2.5 Million in Savings
The Challenge:
The corporate office was looking to deliver system-wide savings by identifying item optimization opportunities for their purchasing locations. The customer requested that Foodbuy assist them in making the identified changes easy to implement.
The Solution:
Foodbuy deployed its Account Management, Culinary, and Field Implementation teams
(FIM’s), who partnered with distributor houses in each region to review the top 80% of spend for the customer’s purchasing locations. The distribution partner provided the Foodbuy team with a view of the distribution portal so that all products could be analyzed and cost/quality alternatives could be identified. Regional meetings—which included the FIMs, customer leadership, and the distributor representatives—were set up to efficiently determine which optimization recommendations would be implemented and tracked
The Results:
As a result of our close collaboration and problem-solving, Foodbuy was able to:
- Identify ~198,000 cases of total optimization opportunity
- Confirm annualized run rate of total cases optimized:* 69,300 (35%)
- Total savings were estimated to be $2.5 million, approximately 3-5%
- Gain alignment from all stakeholders on changes to order guides
- Confirm 80%+ of all identified items optimized