Case Study 2 of 2  

The Challenge

A former Advent client was hired as marketing director of a large food producer that also owned and managed a chain of three restaurants. Charged with the task of lowering overall marketing costs, this client called on Advent to review the current procedures of the marketing department. The company had been purchasing various products from multiple suppliers, and seasonal promotions requiring numerous components were sometimes of inconsistent quality due to the use of so many sources. All products were stored at the company's warehouse, and each item in the warehouse stock was replenished when the stock ran low or out.

The Solution

Advent proposed the following solutions:

Single Source Purchasing
Consistency was the first order of business in establishing and maintaining company branding. Consolidating purchasing to Advent as the single source allowed this client to match color and quality on every product.

Utilization of the Distributor Advantage
Unrestrained by equipment limitations, Advent was able to channel products to the best manufacturer for every job. Our client found that many of the purchases his company had made previously did not take advantage of the latest technology. Advent was able to suggest alternative and more efficient methods of production to reduce cost.

Offsite warehousing of products in Advent's Distribution Center
Our client was able to reduce space requirements in its warehouse, and manage inventories with periodic shipments from the Advent Distribution Center. Shipping from inventory is available within 24 hours, with same day shipments available in many cases.

The Result

Working in partnership with our client, we found that significant cost savings were available simply by redirecting production. In many cases, the client was purchasing large quantities from short run suppliers who could not offer competitive pricing on larger production runs. As an example, Advent saved the client over $10,000 annually on a label by finding a more cost effective manufacturer for the product.

Using the Advent Distribution Center for storage of inventory provides more than just the benefit of reducing storage requirements for our client. Monitoring products as they near a reorder point, Advent is able to suggest combination orders to reduce overall costs.

Working in partnership with different departments, Advent coordinates production schedules and shipping of seasonal promotional packages with multiple products. By centralizing communications and orders from different departments, we are able to combine similar products for significant cost reductions. Tracking the order history, Advent and the client are able to anticipate demand and determine the most economic order quantities.

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