Food Distribution
Sector: Food Distributor
Owner Type: Private
Background Information
A large food distribution company supplies customers nationwide, delivering a broad range of products to restaurants chains and independent operators. The company was formed through an amalgamation of six independent businesses, each having its own product lines and information systems. An initiative to rationalise its product offerings and develop its own private label brand was undertaken but the strategy was taking too long to execute.
Causes
The company had the right strategy of consolidation but it was limited in its speed to market because it was unable to select the appropriate quality of products for its product line quickly. The data between the different business units were not aligned, making it problematic to analyse. The amount of information on the broad range of products was too difficult for individuals to assimilate, especially when the specifications were not standardised. Decisions were bogged down for fear of alienating customers by selecting products with the incorrect specifications.
Turnaround
We were asked to work with the existing team and systems to fast track the decision making process for product selection. Data was provided and analysed in its raw format.
To quickly mine the data, the use of technical know-how to clean the database and the food expertise to qualify the information was employed. Industry experts were introduced to bring perspective on category management and market conditions. The information was then converted into presentation form that enabled the decision making body to make the decisions immediately.
Result
The company was able to develop the product lines ahead of schedule, and through the consolidation process, reduce its acquisition costs by 15-20% depending on the product lines. The discovery process revealed further opportunities for cost reduction.
