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The Company
McAlister’s Corporation (www.mcalistersdeli.com), a 185-unit quick-causal chain based in
Ridgeland, Mississippi, offers 100 menu items in 19 states in the South
and Midwest, generating annual system wide sales of more than $200
million. Since the opening of a single deli in 1989, the fresh,
“made-to-order” deli concept has experienced rapid franchise growth and
has been recognized by INC Magazine as one of America’s fastest-growing,
privately-owned companies.
The Problem
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Distributors controlled
access to food spending information where purchasing transaction
data was in the language of the distributor and made
McAlister-specific reporting requests difficult and time consuming. |
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The prospect of changing
distributors compounded the issue of not owning the data and made
the vendor negotiation process problematic and lengthy |
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There was a lack of
visibility to aggregate food spending and product movement
information necessary to maximize vendor negotiation opportunities.
This was due to an inability to create ad hoc reports by
manufacturer and restaurant locations. |
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Both supplier and
franchisee relationships lacked the benefit gained from clear,
fact-based decision-making. |
McAlister’s has pursued a rapid and successful growth strategy over the
past 5 to 6 years, aimed at attracting new franchisee groups and
franchise-owned locations. In order to maintain this level of growth,
McAlister’s needed to provide automation to improve the purchasing and
distribution process in order to provide maximum value for each of the
franchisee partners. Specifically, they needed to be able to verify that
invoices were being matched to the contracted purchase price without
burdening franchisee management with the administrative overhead
associated with the task. Additionally, given the growth of franchises,
McAlister’s required timely ad hoc reporting capabilities that was
distributor neutral. Purchasing needed to accurately show food spending
patterns by franchisee and by location to ensure buy-in by managers to
corporate purchasing decision-making.
The Solution
Tibersoft offered McAlister’s the benefits of a dedicated solution:
accuracy, speed, and flexibility.
McAlister’s over-riding requirement in a new solution was having the
flexibility to report on compliance issues and aggregate food spending
based on their own naming conventions and information needs without regard
to who their distributors were. Their evaluation of automated solutions
lead them to choose the proven technology and services from Tibersoft.
Tibersoft’s formula for success - flexible ad hoc reporting, rapid
implementation process and foodservice operator expertise - far surpassed
other available options and exceeded McAlister’s expectations.
The overriding benefit derived thus far for the corporate purchasing is
the confidence they feel when meeting with suppliers and franchisee
partners. “Confidence best describes how we all feel about the ability to
answer the important aggregate food spending questions that always come up
during face-to-face meetings”, says VP of Purchasing, Iris Holloway.
Aggregate spending can be viewed through the structure of the company:
franchisee, corporate, regionally and by locations.
This means that for suppliers, purchasing is always armed with the facts
on aggregate spending for all items providing hard evidence for decisions
made and for future procurement plans. For franchisee managers, purchasing
can access real-time ad hoc reports to show exactly what they are using
and not using by location and help in internal planning and evaluation of
future spending and product usage projections.
With the data chaos removed, purchasing adds more value to operations,
finance and the entire franchisee community. As Iris Holloway adds, “I can
answer most questions in 15 minutes or less and that is very empowering to
all of us.”
The Early Returns:
McAlister’s has realized significant returns and impressive benefits to
date:
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According to Phil
Friedman, CEO of McAlister’s, “We expect annual savings of as much
as $200,000 for our franchisee’s operations”. |
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All trading partner and
franchisee interactions are well informed. Iris Holloway,
McAlister’s VP of Purchasing sums up the overriding benefit as
“confidence in the decisions we make and answers we provide our
partners.” |
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McAlister’s implemented
the aggregate spending reporting capabilities for suppliers and
franchisees in less than 3 months. |
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McAlister’s can now
maximize their leverage with their suppliers by having accurate,
up-to-date purchase history information readily available to answer
any questions and support any management decision. |
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Internal product planning
has been significantly enhanced by having accurate and timely data
available almost immediately. |
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The benefits for McAlister's |
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Operational in 90 days |
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"We expect annual savings of as much as $200,000 for our franchisee’s
operations."
– Phil Friedman, CEO |
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