Case Study

Foodbuy Foodservice Saves Member Over $9 MM Through Department Store Eateries

The Challenge:

This member was allowing regional chefs to make purchasing decisions with few guidelines. This autonomy decreased standardization across locations, leading to inconsistent availability and pricing. It also created administrative issues due to frequent changes in suppliers and mass amounts of invoices. This limited administrative abilities to take deliveries because it absorbed so much time. Additionally, the member was unable to leverage their buying power and enforce compliance across locations.

The Solution:

First, the member worked with their Foodbuy Foodservice account manager to define hard specs for products and identify purchases outside of their broadline program to determine true volume. Next, the Foodbuy Foodservice team determined how to leverage their buying power to negotiate the best programs available in multiple food and non-food categories as well as which Foodbuy GPO deals could be deployed. More and more programs were finalized between 2015 and 2022, resulting in continued savings for the member.

The Results:

While this collaboration is still in effect, the member has acquired the following savings thus far:
– $7,799,826 saved from 2015 to 2018
– $1.2 MM saved from 2019 to 2022
– Identified $1.54 MM in total opportunity via Foodbuy optimization

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