Case Study

Cost Savings and Opportunities to Generate Income

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The Challenge:

This Member came to Foodbuy hoping to find ways to save on costs and identify some quick wins for the business. The Member was unaware of the extent to which unit level operators were not in compliance with brand specifications. As a result of this noncompliance, the Member was losing out on cost saving opportunities in high volume categories and faced various stocking challenges in day-to-day operations.

The Solution:

Foodbuy performed a specification book cleanup, which compared the in-stock items the Member should be buying vs. what they were actually buying. After reviewing a total opportunity spend of $450K, Foodbuy identified cost savings across 30 major categories where brand standards were not being met. Next, Foodbuy examined products that were not in stock, but part of the brand’s specification book. After reviewing an annualized spend, Foodbuy recommended to the Member that if they were to request stocking and buy against specific items, this would generate additional improvement in income.

The Results:

This optimization resulted in:

  • 13% improvement in price savings and volume allowance for a total of 26% net savings
  • Increased brand standard compliance
  • Enhanced product availability

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