Price Chopper achieves
over $50 million
in sourcing savings

Executive overview

Profile

Operates in
North America

Customer since
2006

Revenues
$3.4 billion

No. of locations
130+

No. of employee
24,000+

Vertical sector
Retail

Objectives

  • Achieve savings across the supply chain by targeting a variety of spend categories.
  • Create a standard and repeatable sourcing process to improve procurement capacity and results.
  • Adopt and share procurement best practices across departments.

How Proactis helped

  • Freed-up Procurement’s time by handling some of the most resource-intensive steps of the sourcing process.
  • Put a mechanism in place to proactively analyze and identify the best suppliers based on quality, service and price.
  • Increased the number of Trade Partners engaged in strategic sourcing initiatives.

Benefits to Price Chopper

  • Over $50 million in sourcing savings.
  • Dramatically decreased turnaround time on price collection processes.
  • New sources of supply sourced with ease.
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Profile

Price Chopper is a $3.4bn supermarket chain headquartered in New York with over 130 locations throughout the US and 24,000 employees. It was established in 1932 and is owned by the Golub Corporation.

The company underwent extensive business process transformation to increase sourcing savings by bringing more spend under management. They identified that by not standardizing their sourcing process or addressing their capacity issues, they would not be able to maintain their competitiveness.

Objectives

Price Chopper had reached a product quality and price ‘glass ceiling’ with minimal opportunities for large improvements. It was difficult and time consuming to explore new Trade Partner options, and procurement best practices were not shared between departments. With costs in the retail sector rising, and intense competition and consumer expectations putting downwards pressure on prices, they decided to act.

After years of each department purchasing their own products and services, Price Chopper focused on a new enterprise-wide eSourcing process to enable more efficient and unified spending.

How Proactis helped

Proactis provided a unique combination of technology and services in one business framework to help free up Procurement’s time by handling some of the most resource-intensive steps of the strategic sourcing process and improve collaboration.

A full sourcing service mix enabled the organization to align business objectives and get economies of scale. This included analyzing and finding the best suppliers based on quality, service and price; increasing the number of Trade Partners engaged in sourcing initiatives; and improving spend visibility to uncover even more opportunities to save throughout the organization.

Benefits to Price Chopper

Proactis’ Sourcing Service has uncovered substantial savings across the supply chain, averaging 59% savings across a variety of categories.

Not only has the organization increased the number of vendors engaged in sourcing events, but they have accelerated processes and created a more effective price gathering approach, with better understanding of the supply base, category specifications and market conditions.