Case Study

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


The Challenge:

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

The 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.

The 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.
  • Member was able to meet quality standards and maintain its existing supplier.

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