Decrease in Shipping Costs

The Problem

A major food brand commercialization company specializing in big box retail items faced significant supply issues for its new ethnic entrée line. The co-manufacturers used by the commercializer were struggling to cope with the overwhelming number of ingredients, minimum orders, shelf lives, freight and cooking requirements for the extensive range of single-use ingredient. This proliferation of SKUs resulted in a nightmare of ingredient management, causing delays, increased costs, and potential financial losses due to disposed products that had to be purchased in large minimum order quantities (MOQs) but were either not used or expired.

The Solution

To address these pressing concerns, the commercializer sought the expertise of Midas Foods. The Midas team swiftly swung into action and arranged an initial meeting with the co-manufacturers to identify their specific concerns. During this meeting, Midas took note of all the issues raised and devised innovative solutions to streamline the supply chain and improve overall efficiency.

Midas then developed culinary level sauce, glaze, and dip matches in the form of single-ingredient, flexible manufacturing dry blends. These single dry blend alternatives replaced a dozen or more ingredients, simplifying the supply chain and ingredient management process.

Also, by providing pre-measured and pre-mixed dry blends, Midas eliminated the need for co-manufacturers to blend and weigh multiple ingredients manually. This significantly reduced the likelihood of errors during production, ensuring consistency and quality in the final products.

The Results

By partnering with Midas, this major brand commercializer successfully resolved its supply chain challenges, optimized production processes, and achieved substantial cost savings. The introduction of dry blend alternatives not only simplified the production process but also helped reduce costs significantly. The commercializer experienced a 30% decrease in inbound shipping costs for frozen and refrigerated ingredients, thanks to the reduced weight and volume of the dry blends. With fewer individual ingredients to store, they benefited from reduced frozen and refrigerated raw material storage, also contributing to cost savings.

And, the use of dry blends facilitated quicker kettle times during production, allowing the co-manufacturers to increase their production output—improving efficiency and reducing overall production time.