News

Arby's supply co-op employs e-sourcing to control costs

January 8, 2012

ARCOP, a leading supply chain cooperative for Arby's restaurants, recently partnered with e-sourcing firm Intesource to facilitate sourcing and procurement initiatives.

The commodity outlook for 2012 is estimated to rise in the low-to-mid single digits following last year's price increases. According to the National Restaurant Association, wholesale food inflation ran at 7.8 percent in 2011.

As operating costs rise due to surging prices for basic ingredients, foodservice operators are forced to find ways to reduce costs internally or raise menu prices. With consumers still weary of spending, restaurants are evolving their supply chain to create greater efficiencies and help control expenses.

Over the next year, ARCOP plans to incorporate e-sourcing by working in conjunction with Intesource to drive efficiencies and improve bottom line earnings for Arby's corporate and franchise operators.

"Integrating an e-sourcing technology and service for our sourcing process and project management will help us drive standardization and consistency across our entire team," said Les Karel, senior vice president, indirect sourcing of ARCOP. "By using one central platform we will be able to capture the data from our bids and projects for quick reference and review as needed."

E-sourcing, otherwise known as a reverse auction or electronic RFP process, has become a popular means of sourcing goods and services for foodservice organizations. Keith Anderkin, senior vice president, procurement of ARCOP said reverse auctions, when used appropriately, are a fair and balanced way to determine true market price.

"As a result, we will be evaluating all categories to determine where an electronic RFP process may be beneficial while still maintaining the supplier relationships that are a critical part of our success," he said.

The Intesource web-based e-sourcing suite allows for complete transparency and control through each step of the process. Intesource also offers contract management and vendor management tools and services designed specifically for procurement professionals.

New on the menu

Arby's also announced two new menu items through its Facebook page: the Jamocha Cream Pie and the Fish Sandwich.

The Fish Sandwich is made with light, flaky fish fillets and served with Arby's tartar sauce.

Read more about equipment and supplies.