This story is for CEOs who:
- Need in-depth information on customers to better serve them
- Are struggling to weather market variabilities with a narrow margin
- Need to track important KPIs and progress toward goals
The Challenge
As a food service equipment buying group, this general procurement organization operates in a small niche negotiating with vendors on behalf of its members. The organization suffered supply chain disruptions during and after the pandemic, and then further turmoil when the management team turned over. Their business, already operating with a narrow margin, flattened out as vendors and members began exiting the relationship.
Improving customer and vendor relationships to strengthen the organization and its supply chain
SGS Maine Pointe:
- De-risked vendor relationships by bringing new vendors on board, expanding vendor coverage, and initiating strategic negotiation
- Leveraged vendor relationships by enabling the organization to drive volume for vendors, maximizing the impact of group spend, and improving programs and group margin
- Created SKU-level visibility into the supply chain with next-level data analytics tools and models, including deep learning
- Provided insight into member behavior for the first time with a group purchasing management operation system (GPMOS)
Lessons learned for other executives
- Data can be organized, standardized, analyzed, and made available in a form that provides essential insights
- Vendor relationships can be improved with optionality and negotiation
The Results
- $3M annualized benefits
- 20% EBITDA improvement
- 7% growth in group volume
- 300+ clerical hours/week saved with AI-driven analytics
- Identified sales, marketing, and growth opportunities
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Securing company’s growth with actionable data, vendor optionality (CS279)
