To expand its product line and geographic coverage, this national distributor of restaurant supplies had grown significantly through multiple acquisitions over a three-year period.
The organization was in the process of integrating its acquisitions to create a unified core offering. Leadership engaged Maine Pointe to help with this process by breaking down silos across the supply chain, introducing strategic sourcing methodology and optimizing the distribution network.
Maine Pointe was asked to help create a center-led strategic procurement function capable of leveraging demand across all the acquired businesses, creating competition, introducing new suppliers and reducing the total number of suppliers. At the same time, our logistics experts worked with the client’s team to develop a plan to optimize the distribution center network, reduce freight costs and improve customer service.
Maine Pointe’s analysis revealed that the company had been focused almost exclusively on its short-term needs. Procurement was tactical rather than strategic and key categories lacked clear long-term strategies. The client was managing inventory and customer deliveries through three primary distribution centers and seven third-party warehouses. Two of the three primary distribution centers were already operating at full capacity, resulting in sub-optimal logistics and poor customer service.
To overcome these challenges, Maine Pointe:
As a result, the client now has a solid operating platform to work from when acquiring new businesses and integrating them into the enterprise order fulfillment network.
Working closely with the client’s team, Maine Pointe’s collaborative, integrated TVO approach delivered the following benefits: