27 March 2008 | Jake Kanter
The Compass Group is tackling rising food costs by reducing the number of product lines it offers.
The catering provider was able to identify the potential to make savings on sourcing after implementing a Management and Performance (MAP) programme.
In Germany, the business has cut product numbers from 40,000 to just 6,000. In the UK it has halved the 16,000 commodities it buys.
In a trading update, published today, the company said implementing MAP had improved "key" areas of purchasing and delivered efficiencies in the supply chain.
A spokesperson for the firm told supplymanagement.com: "Simple things like reducing the varieties of tomato ketchup we purchase from five to three, has resulted in savings."
Compass Group said identifying cost efficiencies meant the group was confident predicted growth in revenue would continue throughout 2008.