Foodservice Account Receives Significant Value Through Custom Contracting Packaging RFP
The Challenge:
This Foodbuy Foodservice member wanted to identify potential savings on sourcing in a more efficient way. Their existing audit and savings assessment strategy was time-consuming and labor-intensive, taking key players away from other projects. The member wanted to not only save money but save time through a new process.
Because disposables make up a large part of their sourcing strategy, they wanted to focus on this category for custom food service sourcing.
The Solution:
The member’s Foodbuy Foodservice account manager turned to the custom contracting and category management team to provide both a strategic approach to this broad RFP request as well as market expertise for the disposable packaging category. Following a category analysis and spend review, the category management team was able to identify supply chain and savings opportunities as well as provide a strategic and actionable game plan. The Category Management Team implemented a variety of tactics including setting up direct deals with its network of strategic partners, renegotiating with incumbents, leveraging existing Foodbuy GPO programs, and rationalizing SKUs, to deliver significant value.
The Results:
While the custom contracting team will continue to work through additional RFPs for disposables as well as sourcing projects on other areas of spend (including food categories) here are the results and value that Foodbuy has secured thus far:
- Renegotiated pricing on to-go clamshells and consolidated from 3 SKUs to 2; 17% total savings
- Sourced better fitting to-go bag for clamshells; 14% savings
- Sourced new supplier for custom printed hot cups and put together direct deal; 16% savings
- Converted souffle cups to Foodbuy’s GPO program; 55% total value to member
- RFPs of items represent $1.5M in annual spend, current savings are 33% or around $500K