SUCCESS STORY
The Right Fit
See how CORE taps into decades of expertise to find solutions that fit Lorenzo’s challenges
THE CHALLENGES
RISING
COSTS
OVERWHELMED
STAFF
SUPPLIER-RUN
PURCHASING
Shifting the paradigm in procurement has been CORE Insights Group’s reason for being, right from the start. Every day, they show they can help operators like production caterers Lorenzo Food Group get the value they need at a fair price, by filling the procurement skillset gap – and always looking out for the customer’s interests.
Lorenzo Food Group (York Street Market) produces high-quality sandwiches, salads and ready-to-eat meal boxes for hotels, supermarkets, universities, hospitals and wherever else people need a delicious, convenient meal. They grew very rapidly over the past five to seven years and expanded throughout the Northeast and Mid-Atlantic regions. While this kind of growth is every entrepreneur’s dream, when it happens too fast, it’s tough to be fully prepared. That’s why a mutual business associate introduced the Lorenzo team to CORE.
“When a business expands very quickly, management can be so busy keeping up with the growth that they don’t always have time to put in place the right procurement structure and strategy,” said CORE’s Managing Partner Ross Kellman. “In Lorenzo’s case, we were an objective party coming in with the expertise they needed.”
Lorenzo Food Group had been relying heavily on their suppliers to tell them what to buy, without a strong procurement strategy to back up their decision-making. They had remained on the same program for far too long – one that was managed largely by their suppliers, not the customer.
CORE brought them more discipline in procurement and helped them prioritize opportunities to drive savings and better understand the process of negotiating with suppliers. “We are teaching them how to navigate through a process that uncovers various options that can drive the best results for their business,” said Ross. “They hadn’t had the luxury of enough time and expertise to drill down and ask the right questions. They were forced to make quick decisions, but we were able to add expertise and resources that will allow them to make better decisions for the business.”
Part of this was educating the customer about the many different ways to drive down costs. “There are multiple paths you can go down, and our goal is to put together the best program tailored for their business. We were able to drive very significant results for them.”
He said that Lorenzo Food Group was hesitant to take on CORE at first. “They were worried about whether we could really help them, or would be worth the cost,” said Ross. He said these are common concerns he hears from operators – they are used to getting service for free through the Group Purchasing Organization model, but it doesn’t live up to their expectations. “We know we are net positive to the client. While there is a cost to what we do, what we bring to the table is significant. We asked if Lorenzo would give us a period of time to prove ourselves. We said, if you like what we do, we can go forward, if not, you can walk away. They soon realized we were worth the cost – and have stayed with us ever since.”
“I think they were surprised with the expertise we provided, and how our people really know the space. Now it’s sort of a joke with them – anytime they need expertise, they just say, ‘ask CORE, they’ll have the answer!’”
– Ross Kellman, CORE Insights Group
Ross said a huge benefit CORE brings is their network, developed over the past 20+ years the partners have been in the business. “We usually have one degree of separation from a person with just the expertise our clients need.”
For Ross, it’s all about being open and transparent. “Customers may not always like what we tell them but that’s ok. If they don’t want to hear the truth, we may not be the right fit. They’re paying for our expertise to help them become better operators – to drive business results but also customer satisfaction.” He said CORE’s reason for being is to advocate for operators, and help them find the value they deserve, with complete transparency and no hidden agendas. “We have no financial ties that will sway our recommendations or decision making. Our only job is to create the right program for the customer so that their business and their customers benefit.”
Ross said they’ve been able to build a lot of trust in less than a year working with Lorenzo Food Group. “When a decision has to be made, they now say ‘let’s talk to CORE’! They see us as their procurement company…and that’s exactly where we want to be.”
“The value that the CORE team has created for our company more than justifies the cost. Over a period of only a few months, they have become a trusted partner, always working in our best interest and giving us access to invaluable expertise we don’t have the time or resources to build ourselves.”
– Jane Cho, CFO, Lorenzo Food Group
Lorenzo Food Group, Inc. was established in 1967 as a meat and cheese distribution route. While still family owned and operated today, the company has evolved into a fresh food solution for customers seeking a higher standard of food quality and service. Through its consumer brand York Street Market, Lorenzo Food Group is committed to delivering first-class product at an equitable price, striving to create a high-quality and cost-effective program for each customer. It serves healthcare organizations, major corporations, colleges and universities, hotels, deli and supermarket chains, sports arenas and parks, airports and convention centers.
