Case Study

Complete Procurement for a Global Airline Catering Provider

The Challenge:

Complexity of Scale: Serving millions of meals annually across multiple locations demanded a careful approach to procurement. The absence of prior engagement with a Group Purchasing Organization (GPO) limited their ability to leverage cost-saving opportunities. Rapidly increasing operational costs threatened profitability and potential service quality, all prompting the desire for a comprehensive solution.

The Solution:

Customized Solutions: By understanding the unique challenges faced by the Member, Foodbuy created a customized strategy that encompassed both the Member’s vast geographical footprint and substantial meal production volumes. 

Driving value and quality while addressing specific dietary issues, including Halal meats were a top priority for the Member.  Foodbuy diligently sourced strategic supplier options through our extensive network of manufacturer and distributor partners. Foodbuy directly connected our Member with key manufacturers such as Alasko, Sunrise Poultry, and Summer Fresh Salads, which opened up a variety of cost-saving opportunities. As new suppliers were considered for the Member’s operational mix, samples were arranged from manufacturers, streamlined testing processes were instigated until the right product mix was determined.

Foodbuy Canada’s successful transition allowed for discussions to be elevated  leading to collaboration between Foodbuy US and the Member’s US operations, strengthening and synergizing our collaborative efforts across borders. 

The Foodbuy team provided guidance and support to the Member as they navigated their first experience with a GPO, ensuring a smooth transition and helping them maximize their value from their partnership with Foodbuy. The Foodbuy team seamlessly onboarded the Member to our (industry-leading) vendor programs, offering savings on food and service providers resulting in reduced operational costs through strategic partnerships and negotiations. 

Optimized procurement processes also translated into better operational efficiency, allowing the Member to streamline their procurement function and focus resources on delivering exceptional catering services to their guests.

The Results:

Within the first 12 months, the Member witnessed an increase of $40,000 to their bottom line. This immediately validated the efficacy of the implemented strategies. Over time, the Member experienced steady growth, averaging $4,000 per month in savings. 

This consistent growth showcased the sustained benefits of the partnership with Foodbuy. Beyond the initial financial gains, the Member observed operational improvements, such as streamlined procurement processes that positively impacted their day-to-day functions. The collaborative efforts with Foodbuy ensured ongoing annual savings, setting the stage for continued financial gain and stability.

In addition, Foodbuy has provided the Member with access to a wider supplier network, beyond just food to foster strategic partnerships for longer-term procurement advantages.

Foodbuy’s partnership with this global airline catering provider has resulted in the reshaping of their operational landscape. By leveraging tailored solutions, introducing them to the Foodbuy model, and implementing a rebate program, Foodbuy not only met, but exceeded, this Member’s expectations.

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