Risk Mitigation Delivers Unexpected Benefits

Risk Mitigation Delivers Unexpected Benefits
Executive Summary

After a supplier failure compromised quality and threatened its reputation, Chick-fil-A turned to HAVI to mitigate future supply risks. Not only did we meet the brief – but we also delivered unexpected cost and network benefits.

Chick-fil-A Logo

 

Business Problem

Chick-fil-A recently experienced a quality issue that threatened its production, sales – and brand reputation.

It quickly tracked the root cause to a defective ingredient shipment that fed into seven separate manufacturing sites, making it difficult for the supplier to trace and recall affected material.

Chick-fil-A turned to HAVI to prevent future quality disruptions that pose such serious health and reputational risks.

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quality assurance

The fact that HAVI was able to deliver a resolution in just one week for a major quality disruption was extremely impressive. HAVI used its data and analytics expertise to produce a plan that also reduced our costs and increased our service levels significantly.

Mike Ledford , Director, Supply Chain Sourcing, Program Management and Inventory Management, Chick-fil-A
Solution

Working to an extremely tight timescale, HAVI presented a long-term solution to that didn’t stop at cutting risks but exceeded Chick-fil-A’s urgent brief.

Typically, mitigating risks adds cost. But HAVI speedily implemented a solution that unexpectedly helped to cut costs while increasing service levels.

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man in protective gear checking site for food safety
Benefits/Return on Investment

Normally, risk mitigation increases costs. However, drawing on decades of experience in managing supply chain issues, the HAVI team quickly implemented a solution that mitigated risk while helping Chick-fil-A to cut costs and increase service levels.

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Service Improvements

More efficient network contributes to higher service levels

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Network Savings OR Fuel Savings

Shorter delivery distance saves fuel while ensuring restaurants receive fresher product

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Efficiency And Cost Benefits

A more efficient network delivers added value, with significant annual savings

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Long-Term Solution

Five-year plan for mitigating future risk