"Producing" Great Results for the Food Industry

Reducing costs for food ingredients and produce can be a strategic approach to improving profitability and efficiency in the food industry. Over the last six months, the team at Treya Partners has been able to generate significant cost reductions for our PE-backed clients in the food industry.   

The Treya team incorporates a holistic approach to cost reduction and value creation.  Our process begins with a complimentary assessment of Account Payable data to frame the addressable categories and potential savings opportunities followed by collaborate working sessions with our client to further define the scope, approach, and timeframe to execute.   From there, the Treya team conducts line-item purchase history data collection, contract reviews, market analysis and additional deep dives with category stakeholders.  

The delivery process for our Food Services client’s incorporated a combination of the following methods to achieve the highest level of savings while maintaining quality products and service levels. 

• Technology and Data Analysis: Treya utilized technology solutions, such as procurement software and data analytics, to identify cost-saving opportunities, and track supplier performance. These tools helped our clients with data-driven decisions and optimized the procurement processes.

• Supplier Evaluation and Negotiation: We assessed the current suppliers and identified opportunities for cost reduction for the landed cost of the product.  The team requested quotes from multiple suppliers with freight as a line item in the quotes.  Additional negotiations focused on favorable terms, including volume discounts, longer payment terms, and lower prices for larger orders. 

• Seasonal and Local Sourcing: The Treya team evaluated options for seasonal and locally sourced ingredients and produce. 

• Bulk Purchasing and Inventory Management:  We analyzed our client’s usage patterns and identified high-demand items that can be purchased in larger quantities with a consideration of shelf life and storage capabilities to avoid excessive spoilage or waste.

• Long-Term Contracts: Treya negotiated several long-term contracts with primary suppliers and distributors to secure favorable prices and ensure a stable supply. This approach provided both parties with predictability and reduced the risk of price fluctuations.

• Product Standardization & Right Spec’ing:  Our team identified areas of improvement via streamlining of ingredient and produce right spec’ing by focusing on core items and standardizing specifications for the multiple end products. This approach simplified the procurement process, improved negotiating power, and allowed for more accurate forecasting.

• Collaborative Buying: Treya explored co-op and group purchasing options for the clients tail spend. Collaborative buying arrangements allowed for volume discounts and increased purchasing power without direct volume or term commitments.

• Continuous Improvement and Benchmarking: Our team is providing regularly reviews and assessments post project to complete industry benchmarks and ensure best practices are being maintained.