Reduced vendors; increased leverage
A leading food service organization with annual revenues of $16 billion provides food service to schools and universities, corporate and government facilities, and hospitals and healthcare segments, among others. Through an externally facilitated strategic planning initiative, the organization determined that it was investing too much in hard and soft costs in various support infrastructures, causing a distraction from their core strategic efforts. Routinely carrying 1,500 unique items in inventory, they reported over $100,000 in excessive obsolescence costs annually. In addition, the company was spending $1 million per year in human resources, equipment, and facility costs to provide printing and graphic support for more than 5,000 facilities across the U.S.
By focusing on the core objectives of the organization, Curtis 1000 offered not only print and inventory/
distribution services but also local representation and support for custom print requirements through the use of its dispersed sales organization. Curtis also facilitated the merger of equipment into existing manufacturing platforms and supplied online ordering systems and full inventory reporting. Obsolete products were identified and proper ROPs and ROQs were established for ongoing projects and programs.
With Curtis 1000, the food service organization was able to reduce its internal costs by $1,500,000 annually. Reduction in the number of vendors and increased volume leverage allowed the organization to repurpose key resource talent to satisfy their own client needs. Since the program inception, the company has reduced overall print costs by 25 percent while ensuring brand and quality consistency, and graphic spend rates have dropped across the U.S.