New Vendor Sourcing and Selection

Situation

A large multi-national brand with outsourced production, in a very large volume business, was having significant service issues over a long period of time and needed alternative vendor options.

Problem

Current vendor had good quality and below market pricing which made sourcing more difficult because the cost of change was going to be significant. The vendor supplied over 25 items in 3 different specialty condiment categories. Orders took up to 60 days to fulfill vs 10-day lead time agreed to. The delayed orders were creating significant out of stocks in distribution and retail channels and creating lost sales and profits.

Solution

Three manufacturers were sourced and presented to brand owner. One was largest source which could supply entire needs, but incremental costs were tremendous. One manufacturer could supply 2/3 of their needs, but was still significantly higher. The third vendor was a small manufacturer with capabilities to do all items and we could work with to develop a custom program to meet brand owner’s product and price needs.

Benefits

Although costs were moderately higher than current vendor, the third vendor was chosen based on company’s flexibility, focus and drive to meet the brand owner’s needs.

For additional information, contact Mike Hackbarth at Mike@IntlExpertise.com.