Despite the disruption and challenges caused by COVID-19, HAVI Spain has won a milestone strategic purchasing contract with the popular Asian cuisine chain, Padthaiwok, that has rapidly improved the customer’s supply chain performance, enhanced quality and significantly reduced costs.
The distinctive Padthaiwok brand has built a strong reputation across Spain for serving tasty noodle and Thai dishes in beautifully designed minimalist restaurants with great customer service. Operating 50 outlets in Spain and one in Berlin, the business has ambitious growth plans.
Padthaiwok’s decision to appoint HAVI is testament to the determination and initiative of our Business Development team, especially its manager, Javier Moreno. Significantly, all negotiations between team members and Padthaiwok took place remotely over the internet. As Javier comments: “Face-to-face contact and personal chemistry have always played a big part in developing strong business relationships. But thanks to lockdown, I have not visited any of my customers for well over a year. We simply had to find new ways of working.”
After proactively cold-calling Padthaiwok’s head office, Javier explained that he was aware that the business had been experiencing supply chain problems. He also turned the challenges of lockdown into a business opportunity by convincing the customer that the best time to address these problems was when all its outlets were closed. The customer agreed.
Identifying the customer’s challenges
Through his own research and analysis, Javier went on to identify the specific issues that were compromising Padthaiwok’s supply chain performance. Not only was the business dealing with a large number of suppliers, but it also had a long list of SKUs. It experienced a high number of supply failures and stock-outs while individual restaurants were sourcing products from outside the supply chain. In addition, there were no products designed specifically for the chain and the prices of listed products was too high.
Implementing an effective solution
In response, Javier and his team proposed a strategic purchasing solution that has helped to deliver significant benefits since it was signed at the height of the COVID-19 crisis last October. Taking full of advantage of synergies with other HAVI Spain suppliers, the team started by concentrating Padthaiwok’s supplier list while significantly reducing the number of SKUs to eliminate slow movers and avoid cherry picking. Other steps included taking control of purchases from listed suppliers and preventing franchisees from purchasing outside the supply chain. HAVI also brought on board suppliers to create tailor-made products specifically for the Padthaiwok brand, including special breads and desserts. Not only has HAVI’s know-how helped to improve the customer’s supply chain performance, but it has also helped to achieve cost savings of around 20%.
Opening up future opportunities
As Europe begins to open up again, the success of HAVI’s strategic purchasing solution has helped to open up a strong pipeline of post-lockdown opportunities with Padthaiwok. Not only is the business expanding across Spain, but it also plans to expand into Germany after re-opening its current outlet in Berlin. Meanwhile, Javier and his colleagues are optimistic about soon signing an agreement to manage all the other links in Padthaiwok’s Spanish supply chain.