Case Study - A charitable 'not for profit' organisation
Background overview​
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The customer is a charitable, "not-for-profit" organisation which offers personalised care and support. They provide a wide range of housing, care and support services to over 1,000 people
ASAP were asked to review the customer’s hospitality food purchases and advise on ways we could support consolidation and reduce costs. The areas we were asked to review were frozen supplies, grocery produce and long life chilled.
Core food supplies encompassed 3,288 product purchases across 4 different suppliers to the value of 489K
Solution
Working with our suppliers the approach taken by ASAP was to break the work down into 3 components:
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Review the customer’s product range to ensure that the range being purchased was delivering best value.
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Consolidate the customers supply chain.
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Deliver support and added value to the operations team, from both supplier and ASAP
Working with the suppliers account managers and their respective teams this enabled us to deliver the right level of services and compile a competitive proposal for the customer. A high level of services was one of the key requirements for the customer during this process.
Results
Value for the supplier and customer.
As a result of the work conducted by ASAP there were 2 key benefits for the customer and supplier.
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Customer Benefits
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The review of the full customer range enabled us to reduce the number of products from in excess of 3,000 to less than 800.
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In addition to the reduction in products, ASAP recommended consolidation of products to enable us to negotiate additional discount on the finalised range. This process was conducted with the support of the operational team to ensure the finalised range met the key requirements for the catering menu. This exercise delivered an annual saving of in excess of 100k whist maintaining the same quality and standards of their previous basket.
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Supplier Benefits
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The supplier average monthly order value increased from 6.3k per month, to 28.7k post implementation, this represents an increase in spend of 78%.
78%
Supplier Growth
26%
Customer Saving
Delivering the right solution is key to ensuring that time and cost efficiencies are achieved