Case Study : Bulk Food Order Efficiencies

Feb 21, 2021

BACKGROUND

 

Prism Supply Solutions provided a cost-saving solution for supplying dry and frozen food in MENA. 

 

·      Economies of scale were not available in the local supply chain.  

·      Food quality was sub-standard which was affecting company morale. 

·      Client was headquartered in the UK and Dubai and potential implications of Brexit were unknown.   

 

TASK

 

Propose supply chain solutions from Dubai. 

 

Identify a suitable supplier as a contingency to their current local, on-the-ground solution, before eventually integrating them to become the main supply. 

 

Negotiate terms with the new supplier.  

 

SOLUTION

 

Prism Supply Solution consultants met with the Client’s Procurement Manager, Country Manager in Africa and the Middle East and Finance Director to determine the parameters for the task and identify the key drivers. 

 

Cash flow management, a quality food product and a product with a long shelf life were key drivers. 

 

We reached out to our expansive supply chain network in the region and set up PRISM Engagement Days with suppliers and our Client’s key staff to build relationships and market research for good quality food produce with ample shelf-life.   

 

The Client entered into collaborative discussions with a shortlist of companies to ascertain who presented the best solution. 

 

The Client and its preferred supplier proceeded to negotiations. With the support of Prism consultants, the following benefits were negotiated: 

 

1)    Two months’ credit period for all dry and frozen bulk orders; 

2)    Superior product with a minimum of six months’ shelf life, facilitating menu planning and reducing re-order timelines; 

3)    Competitive rates compared to local supply, fixed for 12 months with twice-yearly review. 

 

Using Prism Supply Chain Solution’s “Supply of Goods and Equipment Contract”, the Client’s legal department had a useful template to capture the agreed terms with the new supplier.  

 

 

The entire process from Client on-boarding to successful conclusion was undertaken remotely.