CASE STUDY

Supply Chain Assessment Helps a Food Service Client Increase Profitability Across Their Supply Chain

Aug 21, 2017

Category Overview

Over the years, the food service industry has been distinctively complex considering the variables such as limited time offers, mobile couponing, dynamic flexible marketing, and the short lifecycle of new products. Moreover, the growing consumption of meals at food service establishments, rising demand among consumers for different types of foods, and convenience offered by such services are some of the recent trends influencing the food service industry. However, the food service industry is vulnerable to changes such as a spike in commodity prices and shifting consumer attitude towards health and nutrition may pose a significant challenge.

As a result of such challenges, companies in the food service sector have started adopting supply chain assessment studies as it helps food service companies implement lean practices throughout the business and focus on customer value delivered with reduced wastage in its processes and systems. Also, such solutions help clients gain profits across the supply chain.

The Procurement Pain Point and Insights Offered

A global firm wanted to plot a model, assess their current maturity, and create a roadmap for improvement across their supply chain. The client also wanted to assess their supply chain capabilities and determine how efficiencies and performance compare to best practices from their competitors in the industry. Additionally, they wanted to gain a deeper understanding of the major areas of spend across their office locations through a supply chain assessment study.request free proposal

The supply chain assessments experts at SpendEdge carried out a comprehensive research methodology comprising of primary and secondary research and qualitative and quantitative data assessment to cater to the specific category requirements of the client. During the course of this supply chain assessment study, the client gained insights on purchasing patterns and superior sourcing strategies that were adopted by their competitors.

Additionally, SpendEdge provided benchmarks across their major spend areas and supply chain structure. As a result, the food service client gained a deeper understanding of the profitability across supply chain.

Key questions answered in this supply chain assessment study include

supply chain assessment

Business Outcome

The supply chain assessment study helped the client achieve substantial savings over the previous years. Additionally, SpendEdge’s supply chain assessment study helped the food service client reduce their overall costs to manage suppliers through supplier rationalization. Furthermore, they gained insights on numerous pricing models and cost components, which helped them increase profitability across the supply chain.

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