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ARCOP achieves over $10 million in sourcing savings with Proactis

Executive overview

Profile

Vertical sector
Restaurant / Hospitality

No. of employees
74,000+

No. of locations
3,400+

Revenues
$3.5 Billion

Operates in
North America, Qatar & Turkey

Customer since
2011

Objectives

  • Maximise savings opportunities without adding additional staff.
  • Provide the best possible value to corporate and franchise members.
  • Maintain competitive advantage by controlling costs and efficiencies in the supply chain.

How Proactis helped

  • Acted as an extension of the procurement team to increase the number of sourcing projects run.
  • Incorporated eSourcing into the procurement strategy to unlock new opportunities for savings and expand the value of the supply chain.

Benefits to ARCOP

  • Improved bottom-line earnings for corporate and franchise operators.
  • Achieved sourcing savings of over $10 million – without adding additional staff.
  • Increased the number of sourcing projects, while reducing the average time spent on each event.
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Profile

ARCOP is the national supply chain cooperative for Arby’s, one of the largest restaurant chains in the world and market leader in quick service restaurants.

ARCOP’s membership is comprised of both franchised and company-owned Arby’s restaurants, and utilises system volume to negotiate with suppliers and distributors to establish pricing for all restaurants and to ensure continuity of supply through strategic supply chain management.

Objectives

The restaurant industry is faced with extensive market pressures including rising food prices, minimal industry growth and a real competitive fight for consumer spend; all putting a downward pressure on prices. By not effectively controlling costs and efficiencies in the supply chain ARCOP would not be able to maintain its competitiveness.

The organisation explored ways to find and secure new savings opportunities by expanding and optimising sourcing efforts with the aim of providing the best possible value to both corporate and franchise members – without the need for additional staff.

How Proactis helped

ARCOP selected the Proactis Sourcing Managed Service to act as an extension of its Procurement team. This resulted in the organisation being able to run more sourcing events, in less time, while saving more money – without having to hire additional personnel, build a team or learn a new technology.

Proactis incorporated eSourcing into ARCOP’s procurement strategy to unlock new opportunities for savings and expand the value of the supply chain across the entire organisation. It also consolidated purchase categories to help ensure best value with every purchase.

With Proactis, the organisation established a centralised hub for procurement data, giving access to key information to improve supplier management, compliance and transparency. It also unlocked a valuable resource for future sourcing events, with easily accessible supplier data.

Benefits to ARCOP

The Proactis Sourcing Service was able to unlock new savings and expand the value of the supply chain – achieving savings of over $10 million – without adding additional staff.

ARCOP was not only able to increase the number of sourcing projects it ran, it was also able to decrease the average time spent on each event. Staff were free from the tactical time-consuming sourcing activities to focus on other key initiatives.

The central repository for data captured from eSourcing projects provides easy reference and review points, as well as better visibility and understanding of the supply base, category specifications, and market conditions. Using Proactis has standardized ARCOP’s sourcing process, improved spend visibility, driven operational efficiencies and added organisation-wide value.