Customer case study

Case Study: Reducing Vendors and Increasing Quality

Client Problem:

A Large Mid-stream Energy Company has multiple campuses with varying needs being serviced by multiple vendors. Employees have diverse requests concerning the refreshment centers and sourcing these needs. Through a complicated work-around process, employees and department managers were purchasing coffee-related products in unauthorized ways. As a result, the client’s purchasing power was diminished, internal administration costs were high and precious human resources were being used to provide coffee across the client’s campuses. In addition to these challenges, the client was focused on sustainability as a corporate initiative, and needed to integrate the initiative into its break room program. The client had strict security procedures that limited access to vendors in some areas.

Situation Analysis:

After a site survey and needs determination meeting, Royal Cup quickly learned employees were making purchases from multiple vendors and wasting valuable man hours ordering, stocking and paying for unauthorized products. The client had no mandated program and was unable to find a single source to fulfill all needs. Current vendors were passing on delivery fees to areas with strict security requirements. Multiple vendors supplying equipment resulted in no possible way to enforce standards on equipment to follow sustainability guidelines.

Proposed Solution:

Product: To meet the diverse requests of employees and stay within budget restraints, Royal Cup suggested a bread-basket selection of approved products that would first be approved by procurement. Consolidating all purchases to one vendor, Royal Cup increased the clients buying power and gave procurement a single point of contact.

Equipment: Royal Cup suggested the most energy efficient equipment including brewers with “energy saving modes” and auto shut-off timers. Royal Cup offered documentation and 3rd party studies to demonstrate to the client an energy saving.

Distribution: Each site was assigned a Royal Cup Territory Manager who would take ownership and be a single point of contact. Royal Cup’s high standard of employee recruitment combined with a dedicated service representative cut down on security clearance issues while improving service.

Service: Royal Cup implemented an e-billing process that limited information end users could see when signing an invoice while electronically sending all information of purchases to a single accounting contact. Stock will be replenished using an established, agreed upon “par level”. This stocking process being controlled and implemented by hand-held computers all Royal Cup employees use daily.

Solution Rationale:

The client strived to attract talent in a very competitive industry and needed support managing a mandated refreshment program. By providing documentation of the energy efficiency of all equipment installed, the client could claim credit as part of the sustainability initiative. A consolidated program allowed the client to leverage its scale and buying power to deliver a package that was appropriate for its size. Administrative costs were minimized by simplifying the supply chain and reducing department-specific, independent supply purchases.

Final Results:

Reviews across client departments have been strong and encouraging. The goals of sustainability, efficiency and administrative-resource relief all were attained. Nothing makes us happier than seeing a client meet its objectives.