A Top 3 QSR “Beefs Up” Its Supply Chain & Processing Efficiency
This leading QSR requires a large, ongoing supply of beef products to produce the millions of hamburgers and other beef-based items it sells daily. Given its purchase volume, the company sources beef trims from multiple suppliers, processes the trims and then ships these to distribution centers. Volatility in beef-trim costs, region-specific demand, production capacity, and processing/distribution costs present an ongoing challenge to meet market demand at optimal total cost. The company turned to SCA to help optimize its supply mix, sources, and freight costs, as well as develop a processing system that could drive efficiency across plants, respond to projected demand, avoid bottlenecks, and reduce costs.
Managing Supplier Performance for a Global Foodservice Provider
One of the world’s largest foodservice companies was challenged with managing a poultry manufacturing and distribution network with annual costs in excess of hundreds of millions of dollars. Overseeing this mammoth network was particularly demanding due to on-going volatility in raw material costs and market conditions. The company’s traditional methods did not offer many of the fundamental processes and planning tools needed to continually analyze, measure, and compare results from different time periods, plants, and suppliers. SCA delivered a powerful, collaborative, enterprise-wide process for planning, forecasting, tracking and response.
Global Foodservice Retailer Maximizes Margins in the Dairy Category
A global foodservice retailer engaged SCA Technologies to facilitate the design, development and implementation of new category management business processes. The team deployed SCA Planner™ in a phased process to provide predictable, competitive pricing, robust supplier benchmarking and budgeting, and end-to-end sourcing optimization which help reduce critical decision time from weeks to hours and cost of goods by 3-5%.
A Large QSR Improves Price Projections and Planning for Stores
The QSR company improved pricing and projection processes through SCA Planner™ by delivering better price stability to customers and achieving optimal cost of goods through better visibility and planning related to the supply chain.
Leading Food Manufacturer Re-engineers Pricing Administration
SCA Planner provides an integrated framework that allows business managers to develop a holistic view of their supply chain network and the impact that each decision will have on operational and financial metrics at all the levels of the organization. SCA Planner provided them with an enterprise decision analysis capability that simulates the financial and operational impact of changes in demand, pricing, factor costs, and utilization and process efficiencies.
Driving Savings in a Poultry Supply Chain
SCA Planner enabled a leading food service company to create a more aligned supply chain to plan for market driven product mix, and a capital investment plan on when, where and how much to invest to sustain the forecasted demand growth. Supplier contracts that are annually negotiated were analyzed and revised based on the results from SCAPlanner and a long-term supply strategy was arrived at for Poultry category.
Budgeting Process Re-engineering
SCA Planner™ provided this restaurant chain with enterprise-wide budget analysis of financial and operational factors that fostered collaboration among different business units. The solution also enabled users to evaluate supplier performance and identify potential cost variances to take timely corrective action.
Supply Chain Restructuring
SCAPlanner helped a global leader in electrical and distribution systems to model activity based costs to enable them to analyze the impact of different supply chain variables like manufacturing strategy and inventory on their business outcomes.
Performance Evaluation Process Re-engineering – 1
SCAPlanner enabled a leading food service retailer to implement a collaborative enterprise wide budget process. The solution allowed the managers to evaluate historical trends and benchmarks and also enabled them to identify potential cost variances to take corrective actions. The benefits of SCAPlanner budgeting enabled process helped achieve a realized ROI of 6X to 12X scale.
Performance Evaluation Process Re-engineering – 2
SCAPlanner was adopted for the Poultry category of a leading food service provider to implement an enterprise-wide budgeting, performance review and benchmarking process. The solution allowed the client to integrate sales forecasts, manufacturing plan and raw material sourcing into a continuous forward looking planning process. This forward-looking picture provides managers with the ability to respond proactively to deviations to company plan and make necessary adjustments to the same.
A national distributor of a leading food service company used SCAPlanner to develop a detailed shipment selection methodology for distribution centers to achieve best system cost performance. With this analysis our client reduced their inbound logistics cost by 6%.
Restructuring Commodity-Driven Supply Chain
SCA Technologies’ strategy helped the QSR supply chain to restructure the design, capacity and capability of their manufacturing network. This led to a reduction of 5% - 10% in their commodity costs which was a major cost driver in supply chain.
Driving Distribution Costs Down
SCA Planner™ helped our client to restructure its distribution system and drive a 6% - 8% savings in various markets. In addition, it has enabled our client to arrive at a long term design for their supply chain after analyzing tradeoff between multiple objectives like reducing cost, improving product freshness and reducing cycle times for time sensitive items.
Pork Profitability Optimization
A premium Pork producer needed to enhance profitability by improving cost estimation and price quotation. The application helped the company build a forward-looking picture of costs, margins, and quotes across divergent customer agreements and pricing horizons. The Pork Producer increased revenues, and reduced unit costs up to 5%, boosting profitability 30%.
Electronics Supply Chain Optimization
A large electronic equipment manufacturer had a challenge of transforming its planning and decision making capability. SCA Planner enabled the electronic equipment manufacturer to identify dynamically the optimal supply chain configuration through scenario analysis based on volume assignments, production strategies and capacities in its supply chain system.
In the News
How to leverage supply chain management and technology as a strategy for smarter category decision-making. As volatile as the food industry is, it still relies on a steadfast dedication to the structure that keeps each moving part working seamlessly with the others. Behind the critical conversations between retailers and their supply partners lies a complex […]
In the Spotlight
SCA Technologies Vishy Visweswaran Named to the 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain Food Logistics, the only publication exclusively dedicated to covering the movement of product through the global food supply chain, has named SCA Technologies’ Chief Technology Officer, Vishy Visweswaran to its 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain award. The Food Logistics’ Champions: Rock Stars of […]