Fast Food Chain Avoids Outages Through Peak Season Supplier Switch
The Challenge:
This Member previously relied on two suppliers for one proprietary item, as this SKU is the restaurant’s second top protein. The item itself has very tight specifications and the secondary supplier was losing the capability to produce to the Member’s spec, resigning the business with just 75 days’ notice.
Their primary supplier couldn’t take on any additional volume for this product, leaving the Member searching for a quick solution just months before their busy season.
The Solution:
Within three weeks, the Foodbuy Foodservice team had conducted an RFI with 18 suppliers, narrowing down the group to two options. Samples were sent to the Member for approval, quality assurance checks were coordinated, vendor agreements were signed, and cost negotiations were finalized within the next six weeks. When sourcing a secondary supplier for a proprietary item, this process normally takes anywhere from four to eight months.
The new supplier began building inventory in time to fill orders and the Foodbuy Foodservice team coordinated a phase-in/phase-out that prevented any gaps in supply. All of this was achieved without requiring any premiums to be paid to secure raw material or expedite product development/production.
The Results:
Foodbuy Foodservice was able to identify and successfully roll out secondary supplier during the labor constrained COVID era while at the same time keeping their costing completive with their existing supplier.
- 99.5% fill rate by the new supplier
- 0 out of stocks by the engaged distribution centers during the five-month busy period.