Our client, a foodservice distributor, was started as a 3PL for KFC and Taco Bell. In their wish for growth, they had entered various segments, increasing sales, but having experienced unacceptable profit margins.
Baeza & Asociados was hired to design a profitable growth strategy. The main finding was related with the opportunity of better negotiations with the food producers, which wanted to have alternative channels (outside of Wal-Mart) that would allow them to reach small independent restaurants.
Our recommendation was to design vertical solutions for restaurant segments as a one stop shopping. Additionally, it was necessary to automate the supply chain with ERP, SCM and B2B solutions.
Our client adopted a strategy that has allowed them to enjoy several years of sustained and profitable growth.