Interim Chief Procurement Officer

$500M Food Distributor

Background

  • The company is a broadline food distributor that supports both food service and retail businesses throughout the Midwest and is comprised of two distributors that were recently acquired by the financial sponsor and merged
  • Prior to the merger, the companies were competitors in the same market, which has resulted in overlap of customers and sales territories

Contributions

  • Executed competition to select one co-op buying organization for the combined organization
  • Cascaded company objectives and targets to Procurement and created functional plan and strategy
  • Implemented marketing revenue growth strategy and executed negotiations plan for >50 suppliers
  • Implemented a category strategy process  and piloted for 2 categories addressing >$30 M in COGS
  • Developed standard measurements for Procurement, established targets, and implemented management dashboard

Results

  • Implemented action plans to drive $1.2M in incremental revenue through current year and $9.7 M in cumulative revenue over next three years
  • Implemented Co-op utilization plan to improve returns by $1M
  • Negotiations with manufacturers yielded 18% increase in vendor subsidies, appx. $300K
  • Rolled out strategic vision, operating model, organization design, and operating model for procurement