Case Study

Foodbuy’s Supplies, Equipment and Services Programs Achieve More than $1.3M in Annual Savings for Hospitality Member

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Challenge

This Member lost a significant amount of business in the wake of COVID-19. Shutdowns hit them especially hard as the vast majority of their locations rely on traffic from business and leisure travelers. The Member was looking for ways to reduce their operating costs to offset lost revenue and identified their Supplies, Equipment and Services (SES) spend as an area of opportunity. This purchasing spend was not centrally managed and not well controlled at the local level, leading to poor visibility and highly variable cost.

Solution

Foodbuy recommended prioritizing six areas of significant SES spend, including armored car, waste hauling, lighting, office supplies, uniform purchase and rental, and fire prevention. Rather than having Member locations make their own decisions locally for category purchases, the Member directed that locations utilize Foodbuy’s preferred vendors. Foodbuy managed and simplified onboarding for all programs via the FUSE onboarding platform, and the Member and their locations enjoyed savings for all prioritized SES categories of purchase.

Results

  • This Member saved an average of 13.5% on $9.6 million of annual spend across the six categories of SES purchases, totaling over $1.3 million in annual savings.
  • This Member enjoyed increased visibility into spend in these categories. This benefitted its Quality Assurance and Purchasing Teams, who can now aggregate spend and put categories out to RFP.
  • Utilizing FUSE allows this Member to cross-sell other SES programs and seamlessly onboard locations to new programs.

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