A Collaborative Approach to Increasing Contract Utilization
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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 Concierge by 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 Concierge by 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, Concierge by Foodbuy was able to:
- Identify ~198,000 cases of total optimization opportunity
- Gain alignment from all stakeholders on changes to order guides
- Confirm annualized run rate of total cases optimized*: 69,300 (35%)
- Confirm 80%+ of all identified items optimized
- Total savings were estimated to be $2.5 million, approximately 3-5%.
*Measure from the first six months of tracking activity. Case conversions normalized due to a staggered start schedule, new stocking requirements and seasonality.