Since its founding in 1983, Indian Ridge Provisions has proudly provided high-quality meat and seafood to the finest hotels, restaurants, and country clubs in the Tri-State area. Complete customer satisfaction is their primary concern. They offer many value-added services such as hand-selected products, custom cutting, portion control and vacuum packaging.
Joe Hinderliter and Steve Polcsan
Indian Ridge Provisions implemented Food Connex Enterprise, a business management tool for food distributors and processors, to improve their business workflow and profitability. Joe Hinderliter, owner of the business, and Steve Polcsan, vice-president, from Indian Ridge sat down with Paul Hernandez-Cuebas from Food Connex to review the progress that they had made in achieving these goals.
“Before Food Connex we were handwriting everything.” Steve offered when we asked him to compare where he started to where his is now, “And we were seeing errors in shipping and transcription errors when billing our customers. To fix that we had three managers running around for four hours each day gathering up all the shipping information and weights so they could review them and try and catch mistakes before they made it to the customer. Because that’s what you do when you have a problem, you put your top-level people on it because they are your problem-solvers.”
Joe’s insight was a little more ‘bottom-line’ driven. He pulled out his Profit and Loss statement and showed us the line item for credits issued before Food Connex was implemented. “Those numbers right there are credits we had to issue because of mistakes we were making. That means our sales figure were being artificially inflated, our customers were being inconvenienced, and I was paying someone to chase down and fix mistakes that didn’t need to be made."
Joe targeted the root of these problems saying, “When we look into mistakes that were made 1 out of 100 times it was the processor that made it, the other 99 times it was a mistake when copying information from a worksheet (pick ticket / order slip) to the invoice.” Steve explained “The old way, we wrote down the weight from the scale on the box, wrote the weights from the boxes on a sheet, wrote the weights on a sheet on a master sheet, then invoiced from the master sheet.”
Eliminate Handwriting and Transcription
“Since implementing Food Connex we aren’t writing anything by hand. All the employees have adopted the new system and we’ve even had new employees added that trained quickly and easily.” ~ S. Polcsan
“This has eliminated the errors being caused by transcription which were 99% of the errors we were seeing.” ~ J. Hinderliter.
“Realistically we’ve saved 8 hours a day in labor. For the people processing entering variable weight items is much faster, entering standard weight items is a little slower so overall we’re ‘saving’ $40 to $45 thousand a year in fully loaded labor. But time savings aren’t the real value, it’s the time reallocation. Processors are entering information directly into the system so we no longer need the three managers to spend four hours a day chasing paperwork. This has allowed our top-level people to refocus on their top-level responsibilities.
That’s the real value, getting our problem-solvers back so they can concentrate on inventory management, purchasing, quality control and equipment maintenance rather than scrambling just to get product out the door.
What’s the dollar value in having our top-level people focused on their top level jobs? I can’t put a number on it except to say it’s high.” ~ S. Polcsan
Accurate Sales Reporting
“This is our sales revenue, and these are all the credits we issued on posted invoices. So that first number you saw wasn’t really our sales revenue because we have to subtract the second number from it.” Joe said indicating the sales and credit memo lines on his Profit and Loss Statement.
“Here are the two quarters before we started with Food Connex.” The amount on the credit memo line number was definitely bigger than a breadbox. “Now here are the credits we’ve had to issue on posted invoices in the quarters since implementing Food Connex.” The number was 0.
“We’ve eliminated 75% of all the credits we had to give by getting the invoices out the door accurately. I can look at my sales reports now and see an accurate representation of what I’m really delivering to my customers and how much revenue I’m generating.” ~ J. Hinderliter