finest foods case study solution

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 Retail category management Case study: Finest foods Submitted by M.G.BHARATH KUMAR ROLL NO- 12

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Page 1: Finest Foods Case Study Solution

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HEART of ENGLAND fine foods is the regional food group for the West

Midlands representing local producers.

HEART of ENGLAND fine foods (HEFF) consulted with 250 regional food

producers and conducted a survey with 100 current and potential customers

for regional food products to determine the demand for a consolidateddistribution initiative.

The initiative was developed in response to producer requests and an

understanding that the market required a less cumbersome solution to

working with smaller µlocal¶ food and drink producers.

How the issue was tackled

By consolidating deliveries from producers into a µone order, one delivery,

one invoice¶ system, the goal to save miles and take vehicles off the roads is

realised.

The partnership offers a more effective route to market for SME regional

food producers and a simple solution for independent and multiple buyers

whilst reducing administrative inconveniences for both parties.

By creating a network of satellite hubs, to coordinate shared deliveries and

backhauls into a central depot before consolidated orders are delivered to

the producers¶ shared customers, it brings savings in overall miles travelled.

Benefits and impacts

With a common customer profile the initiative has significantly reduced thenumber of deliveries and the associated administration, which has resulted

in securing and cultivating growth in sales for all producers.

The initiative consolidates customer orders so that goods are delivered in

one multi-temperature vehicle from almost 100 food and drink suppliers.

While the total miles saved by the initiative are unknown, HEFF conducted a

study on just two of the accounts over a six-month period and this showedsavings of 60,600 miles between the previous delivery methods where

suppliers worked independently.

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Other benefits include:

y  For the participating producers and the buyers there is a considerablecost saving in the time associated with placing and processing orders,

the raising and payment of invoices and the delivering and receiving of 

goods.

y  The HEFF Delivery Service provides participating producers with a

telesales function to call customers for orders as well as taking on theresponsibility of invoicing. This more proactive approach has resulted

in growth of sales in some accounts.

Next steps

In the short term, HEFF continues work with more small, regional suppliers

to develop the range of producers available, adding further value to the

customer.

In the longer term, HEFF will continue to market the service to a wider

customer base on behalf of regional producers.

Whilst the current customers are predominantly retail, HEFF recognises thatthere is a huge scope in the foodservice sector.