Inbound Vendor Control

Core-Mark is one of the largest broad-line marketers of packaged consumer products in all of North America. Initially founded in 1888, they provide marketing, distribution and logistics services to over 29,000 retail locations through 28 distribution centers.

Core-Mark’s vendor mix includes the likes of Kraft, Kellogg, General Mills, Safeway and Wrigley.

They work with those vendors closely to combine competitive pricing with innovative marketing programs and technology solutions so that their customers can focus on growing their businesses.

 The Challenge

The procurement team within Core Mark’s Minneapolis office realized that a considerable amount of time and effort was being put into the coordination and communication of inbound shipments to their facility. In addition to this they realized that select “vendor partners” were marking up their freight costs by as much as 10-25%.

Meeting the Challenge

Their procurement team partnered with the SAV Solutions Group to implement an inbound vendor management program. The SAV Solutions Group configured a custom-branded shipping portal for Core Mark’s procurement team and them helped them craft and deliver a polite letter of mandate to a group of pre-selected vendors.

The SAV Solutions Group handles vendor orientations, communications and on-boarding processes.

Vendors are being asked to comply with a foundational routing guide within a Core Mark-designated time frame and Core Mark completes the circle with a polite letter of thanks.

An Ever-Evolving Solution

 The SAV Solutions Group is currently enrolling Core Mark’s 3rd round of vendors and compliance is running at 77%. The Core Mark procurement team gets 100% visibility of activity, complete transparency of finances and has taken a “quantum leap” in centralizing their shipping data.

There is a behind-the-scenes freight study being conducted by an independent 3rd party; results are being shared with Core Mark’s corporate office in San Francisco and other regional offices will soon have an opportunity to enroll their own vendors in the program.

I would highly recommend to others that they give this program a try because there’s no risk involved whatsoever….I particularly like the convenience, options, and rates that the program provides and when competitive “players” call on me these days I let them know I am very satisfied with my current situation.

Jeff Anderson - Director of Purchasing Core Mark