Case Study

A Solution to Drive System-Wide Compliance

MEMBER PROFILE

This member is a national hotel management company with approximately 150 locations across the US. Hotels range in scale from focused service hotels to upscale resorts.

  • 150+ Hotels
  • 30,000+ Rooms
  • Located in 31 states

CHALLENGE:

The company was looking to maximize compliance to Foodbuy programs from the start of the on-boarding process as they transitioned to OneSource (Foodbuy’s proprietary technology procurement platform). The customer wanted to focus their purchasing power with the implementation of an approved spec book.

 

SOLUTION

  • The Foodbuy Culinary Solutions team assisted the VP of food and beverage in the development of the spec book to help to identify the core, highly-leveraged items that the client should be utilizing. Spec books and shopping lists were added to the supplier catalog via the OneSource platform to drive compliance.
  • In a collaborative effort with sales, account management, and OneSource associates, Foodbuy set goals and used technology to enable and track purchases. Additionally, a dedicated client training was held to explain the initiative and how to take full advantage of the technology.

 

RESULTS:

  • Annualized savings of $424K through broadline distribution
  • Annualized savings of $150K on purchases made through local distributors, with 72% of local distributor spend converted to approved broadliners
  • $45K of additional savings were identified through operational walk-throughs and suggested process improvements
  • 13 Month Rate of Return (ROR) – Rebates/Total Spend 3.6%
  • Total Savings – Rebates & Deviations/Total Spend 7.5%

Challenge

The company was looking to maximize compliance to Foodbuy programs from the start of the on-boarding process as they transitioned to OneSource (Foodbuy’s proprietary technology procurement platform). The customer wanted to focus their purchasing power with the implementation of an approved spec book.

Solution

 

  • The Foodbuy Culinary Solutions team assisted the VP of food and beverage in the development of the spec book to help to identify the core, highly-leveraged items that the client should be utilizing. Spec books and shopping lists were added to the supplier catalog via the OneSource platform to drive compliance.
  • In a collaborative effort with sales, account management, and OneSource associates, Foodbuy set goals and used technology to enable and track purchases. Additionally, a dedicated client training was held to explain the initiative and how to take full advantage of the technology.

Results

 

  • Annualized savings of $424K through broadline distribution
  • Annualized savings of $150K on purchases made through local distributors, with 72% of local distributor spend converted to approved broadliners
  • $45K of additional savings were identified through operational walk-throughs and suggested process improvements
  • 13 Month Rate of Return (ROR) – Rebates/Total Spend 3.6%
  • Total Savings – Rebates & Deviations/Total Spend 7.5%

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