JJ Food Service Ltd. is one of the leading omnichannel bulk food retailers in the UK. Managing Director Mushtaque Ahmed shares insights into JJ Food’s focus on promotions and how RELEX is helping them maximize profit and value for their customers.
Transcript:
JJ Food Service operates nationwide. We have got 11 branches, 3000 different product lines. We have got roughly 100,000 B2B customers. 15-20% of our turnover comes from promotional items, and that’s huge for us.
In our business, promotion management is always a challenge, especially in a modern era when you are running a business with a lot of smart customers; you really have to be value for money for them. At the same time, make sure that you stay profitable within your own business. That’s when we decided that – OK – this is about time to onboard the RELEX promotional model and get rid of some of the headaches we have, and solve some of the challenges we face on a daily basis.
We found the synergy with RELEX as well in the sense that, from the CEO to the solution architect or the consultants, everybody is approachable. And as a result, this synergy helped us to pretty much accelerate the process of finding the data, validating the quality of the promotions suggested by the tool itself, all the way to go-live.
Looking at the suggested products which came from the tool and having run it for just around a month or so, that we can almost see that a 10% increase is definitely an achievable target. We also noticed a 7% increase on the profit side of those promotional items as well. And this is very important. It was a pretty eye-opener in the sense that we were unnecessarily promoting some products at a lower price point for no benefit whatsoever.
So, the tool actually put that right in front of us as is like, “Hey guys, wake up, you can do better.” Whereas now is a lot cleaner. Is that the right product for the right customer segment? And as a result, we already noticed between 10-12% increase in the volume. So, I think these numbers are going to only go upwards.
