Member turns to Foodbuy to overcome the challenge of product shortage
The Challenge:
The Lunch Lady Group, a Foodbuy Member, is a meal service provider for children in an education and childcare setting, and has been trusted to provide children with wholesome and affordable food since 1993.
Their meal program uses SKUs that are certified under the Policy/Program Memorandum 150 (PPM 150), which sets nutritional guidelines for food and beverages sold in Ontario’s publicly funded schools. The Lunch Lady Group is responsible for ensuring that all food and beverages sold on school premises meet these nutrition standards. Therefore SKUs are carefully selected to meet the criteria set out in these guidelines and are not always easily replaced.
An issue arose when one of the key SKUs this Member used was unexpectedly discontinued by their preferred supplier. This product gap forced the The Lunch Lady Group to use a substitute product which received much backlash from the parents. They were eager to re-establish access to their original, PPM 150 and parent-approved product.
The Solution:
Foodbuy conducted a comprehensive national assessment of product usage, collecting the combined purchasing volumes from other Foodbuy Members and Compass Group units. Foodbuy presented the aggregated sales volume for that SKU and worked with the supplier to make a data-based decision regarding this particular SKU.
The Results:
- Based on the sales insights provided by Foodbuy’s data collection systems and industry expertise, the supplier was able to make a fact-based decision to continue to produce the desired SKU.
- After having faced disruption to their procurement processes and operations, The Lunch Lady Group was then able to once again provide their customers with the desired and PPM 150 approved menu item.
- Foodbuy was able to demonstrate true partnership with their Members and supplier partners for the success of both parties.