Case Study

Foodbuy Conducts a Full RFP and Saves Member 8% on a Top-Selling Proprietary Item

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Challenge

This rapidly growing member wanted to improve the cost and reduce the volatility for its highest volume proprietary dairy product while maintaining the brand’s quality standards. This product was responsible for an estimated $2.3 million in purchasing volume from May 2019 through April 2020.

Solution

Foodbuy developed a custom procurement strategy, which required leading a strategic bid and negotiation on behalf of the member. Foodbuy contacted several manufacturers, coordinated samples, negotiated a lower everyday price, and arranged for a buy-in based on market conditions. Savings and cost stabilization was achieved by isolating the core cost components of the proprietary item, and as an added bonus, the member was able to maintain its existing supplier.

Results

  • Projected 8% total cost savings on single product responsible for $2.3 million in pre-COVID purchase volume
  • Projected 18% total fixed cost savings

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