In today’s market, consumer preferences are changing very quickly and the demand for product innovation is happening at a pace that we’ve never witnessed before. From established national food brands to traditional dairy producers, everyone is affected. Finding “a better way” involves challenging traditional norms, continually looking to innovate and develop a laser-like focus on what your company’s mission truly needs to be.
Having recognized this over the past few years, QCS Purchasing is redefining its business model from that of a traditional buying cooperative to one that is centered on being the best “solutions provider” to the community that it serves. The initial results of its transition are a number of successful new programs, and membership growth as demonstrated by the company’s best year ever in 2014.
The QCS Purchasing mission is to provide the finest buying solutions possible in the form of price, quality and service to its member/owners. Additionally the QCS supply network represents only the best in the food and beverage industry. Some of its core programs include:
- Corrugated Boxes (based on a formula pricing model)
- Resin – HDPE (national contracts)
- OJ Concentrate (futures trading)
- Corn Sweetener (tolling program)
- Maintenance & Repair Supplies (MRO)
- Cleaners & Sanitizers
- The focus on being a complete solutions provider has also helped spawn other innovative programs such as:
- A highly successful captive insurance company owned by its members.
- Development of strategic sourcing alliances to help supplement its in-house buy capabilities.
- A volume incentive model that encourages increased participation from its participants as well as its supply partners.
Organized as a “not-for-profit” ensures that all earnings after expenses are returned to its member/owners in the form of discounts, rebates and patronage. These earnings can be substantial as the expenses of the organization are .03% of its overall spend. In addition, there are no ongoing fees of any kind to participate as a member and program use is at the discretion of the member.
QCS Purchasing LLC is the largest buying solutions provider of its kind serving well over 100 individual companies and over 600 locations. The company is a joint venture which is owned by three organizations; SECO (Southeast Cooperative Organization), Quality Chekd Dairies and Allied Purchasing. Combined, their member companies have sales well into the billions of dollars in all segments of the food and beverage industry such as dairy, organic and natural foods, bottled water, carbonated beverages, fruit/vegetables and craft beer producers.
This article was prepared by QCS Purchasing. For more information about QCS Purchasing, go to www.qcspurchasing.com.
QCS operating objectives:
- To deliver “best in class” pricing, quality and service
- Continue as the low-cost solutions provider in our space
- Adapt and innovate in order to always provide value for all of our stakeholders