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Supplier Qualification – High Risk Food Ingredients

Business Challenge

The cost of ingredients is the key component in the manufacture of bakery premixes. Food safety is an imperative in the selection of suppliers of high risk food ingredients such as dried egg powder. A specialty bakery mix business was paying significantly over the market price for egg powder but there was only one approved supplier for this high risk ingredient, significantly restricting the opportunity to reduce ingredient cost.

Solution

A strategic decision was made to identify key egg powder ingredient suppliers, to ascertain their interest in partnering with the business. A Rock Ledge Resources principal led the project to identify the suppliers, working with these vendors to ensure that their systems, food safety, HACCP and cGMP were at the required standard to meet legal and business needs. Three egg suppliers were identified who were known to be competitive in the market and were committed to supplying product to the required quality standards.

Results

Following the quality approval of three egg suppliers the business negotiated prices with the approved suppliers and achieved a cost reduction of greater than 20%. The quality standards for the existing supplier required action to bring them up to that achieved by the new suppliers.

Relationships: John Hunter | Operational Excellence | Manufacturing