03/2008 TopSource in top 10 of Ten Companies To Watch - Food Logistics' annual salute to food and beverage companies that are using innovative solutions to address logistical challenges. Read the full article.
#4. TopSource LLC is in the top ten of Food Logistics Ten Companies to Watch. TopSource performs strategic sourcing for its members, helps retailers and wholesalers lower costs and improve profits. TopSource LLC, a not-for-resale (NFR) division of Topco Associates LLC, is using innovative technologies and processes to help its members to lower costs and improve the efficiency of their supply chains. Topco, based in Skokie, IL, is a private label purchasing consortium serving food retailers and wholesalers.
TopSource’s main purpose is to help companies lower costs on a wide range of goods and services, including corporate and national brands, perishables, equipment, supplies and business services. “Rising costs for ingredients and transportation as well as cutbacks in consumer spending have combined to create one of the most difficult environments for food retailers and wholesalers in recent history,” says Chuck Wright, director, sourcing, at TopSource, Braintree, MA. “We perform the strategic sourcing function for our members—smaller companies that compete with WalMart and Kroger. “
NFR spend is an area of huge savings potential for retail and wholesale companies. It’s spending on all products and services not resold to customers. According to TopSource, NFR spend represents one of the three largest categories of spend, along with cost of goods and wages. TopSource says it has saved customers an average of 18 percent in this area. In order to achieve these results, TopSource is using a combination of Ariba Sourcing On-Demand, Ariba Contract Management and Ariba Supplier Performance Management. Ariba Sourcing was developed to enhance the ability to negotiate for goods and services and drive bottom-line savings. Leveraging Ariba Contract Management, TopSource can manage and drive compliance with agreements. And through Ariba Supplier Performance Management, TopSource can discover, assess and on-board new supplier partners, with the ability to continuously measure and improve supplier performance. “We chose Ariba because it offers a complete strategic sourcing solution,” says Wright. “So RFP, auction, contract and supplier management—we found the functionality of the tool to be superior to other solutions in the marketplace. Also, the tool is used by suppliers that participate in the events with us.”
TopSource’s eAuction offering can optimize capacity, quality service and cost for retailers that manage a diverse cross section of transportation, including dry and refrigerated transportation. By utilizing auctions, a TopSource customer has received up to 16 percent savings from high quality, fully qualified suppliers, while at the same time benefiting from a significant reduction in negotiation cycle time.