Case Study

Improving Corporate Compliance and Driving Savings Through Strategic Partnership with Foodbuy

The Challenge:

The client, a geographically remote and seasonal property, faced challenges in meeting corporate compliance standards. While other properties in their portfolio were achieving a purchasing compliance rate that was twice as high as this location. Given the unique operating conditions and challenges due to their remote location, the goal was to increase compliance by 20% while continuing to maintain high-quality standards.

This remote location made it difficult to access products, impacting their ability to achieve compliance targets. Being a seasonal business, the pressure was on Foodbuy to improve performance quickly and effectively before the season began.

The Solution:

To tackle the challenge, Foodbuy Canada assembled a team of experts across multiple departments, including category managers, culinary experts, and Foodbuy’s Centre of Excellence financial analysts. The team’s approach focused on optimizing purchasing practices while ensuring that product recommendations would align with both operational requirements and corporate standards.

A detailed plan was developed to increase compliance rates through the following steps:

  • Collaborative Approach: To understand the unique challenges of the client’s location, such as remote access and logistical constraints, the Foodbuy team worked closely with the client’s culinary team. This collaboration ensured that proposed solutions met the required quality standards and logistical needs.
  • Opportunity Identification: The team identified a list of 100 potential opportunities for improvement in purchasing compliance, narrowing it down to 60 key recommendations. Each opportunity was evaluated for its potential impact on the client’s operations, focusing on quality, logistical feasibility, and cost-effectiveness.
  • Product Testing and Evaluation: The team focused on 60 high-potential products that met the requirements of both the client and corporate standards. These products underwent rigorous testing, during which the culinary team assessed them based on texture, appearance, colour, and other critical factors. The product evaluation process was conducted blindly, with manufacturers kept anonymous to ensure objective feedback.
  • Final Recommendations: After a thorough evaluation process, the client verbally approved 24 items. Foodbuy conducted a financial assessment of the approved product list, which formed the basis of the final procurement strategy.
  • Ongoing Monitoring: To ensure long-term success, biweekly procurement calls were implemented to track the execution of the newly implemented product selections throughout the season.

The Results:

The collaboration between Foodbuy Canada and the client led to significant improvements in compliance and cost savings:

  • Compliance Improvement: Compliance rates improved by the targeted 20%, demonstrating a significant improvement in a short period of time.
  • Cost Savings: The optimized procurement strategy enabled the client to achieve approximately $200K in savings over the course of the season, creating more room in their budget.
  • Tailored Solutions: Foodbuy worked with key suppliers to implement specific purchasing programs and onboarded new suppliers to support the client’s menu requirements and market needs.

This highly coordinated project demonstrated Foodbuy’s ability to provide tailored, actionable solutions that met the unique needs of a member despite a remote location and seasonal business cycles. The client benefited from Foodbuy’s hands-on approach, as close collaboration resulted in products and processes that aligned with their operational goals and corporate expectations.

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