Leading Food Manufacturer Drives 400% Spend Growth and 25% Savings with Procure Analytics

Member Profile

The member is a large food manufacturer, producing baked goods such as breads, breadsticks, and related products. With an annual revenue of approximately $5.1 billion and over 5,000 employees, they operate 40+ bakeries in over 20 states.

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Procurement Spend Challenges

Before partnering with Procure Analytics, the member faced several procurement-related challenges:

• They lacked a dedicated procurement team;
• Many of the employees in charge of procurement-related projects were new;
• Their indirect procurement spend was scattered and unmanaged;
• They had no visibility into their overall spend, outside of accounts payable (AP) data, leading to an absence of savings tracking and reporting.

The company was introduced to Procure Analytics through a consulting firm that was already engaged in other projects around the business, and PA was brought in for their deep expertise in MRO spend management within the food manufacturing space (PA currently has over 80 member companies in food and beverage manufacturing).

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GPO+ Approach for MRO Spend Management

After assessing the company’s needs, the Procure Analytics team got to work:

First, the team identified two key supplier programs to help streamline procurement and make the most immediate impact: Fastenal for their general industrial spend and Stauffer for their safety glove spend.

Next, our team identified a corporate stakeholder who recognized the value of PA and worked with the leadership team to target 13 bakeries with large spend as the starting point.

Once we had the right categories and an internal champion, the PA team conducted a 3 month implementation rollout of the program which included a “roadshow” to each of the 13 bakeries with the Fastenal and Stauffer teams to demonstrate the value of the PA program to plant-level employees.

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Results

PA’s GPO program delivered big: 25% savings on general MRO and gloves/PPE, and the member company’s spend grew 400% following the 3 month implementation.

Following the initial success, the PA team set out to find new savings opportunities in other indirect categories as part of wave 2:

• Evaluated Freight and Uniforms spend;
• Drove savings on $3 million in Pallets spend under our Packaging program;
• Connected them to our specialty MRO program for power transmission & bearings (PTB).

PA’s benchmarking team is currently working on harvesting value from additional categories including jan/san, energy, stretch film, and tail spend.