Challenge: Danaco struggled to share reporting with its quick-service restaurant chain clients in a way that would help them quickly improve their produce supply chains.
Solution: Thanks to Domo Everywhere, each client now has access to real-time insights into everything from produce costs and invoices to issues that impact quality, such as recalls and weather.
Impact: Danaco helps its clients more easily manage their produce supply chain, ensuring fresh delivery of lettuce, tomatoes, and other produce to locations across the country.
Danaco delivers fresh data to its restaurant customers with Domo Everywhere.
In the quick service restaurant chain world, fresh tomatoes, lettuce, potatoes, and other produce represent just a tiny percentage of the cost of a meal, which means there are usually only a couple of people dedicated to managing produce for hundreds or thousands of locations across the country. However, the perishable nature of produce means that roughly 40% of complaints are due to products being used past their best-by date. This results in a lot of challenges for the restaurant chain without the manpower available to solve them.
Danaco Solutions helps large quick service restaurant chains overcome that challenge by working as their outsourced produce supply chain experts. As the CFO and CIO of Danaco, Michael Schallman relies on Domo Everywhere to share real-time insights with each customer about the current state of their supply chain, helping restaurants control costs while optimizing their fresh produce supply chain.
Insights delivered fresh.
Before Domo Everywhere, Danaco struggled to share reporting with its restaurant chain clients. “We would end up sending a lot of reports, but there wasn’t a ton of interactivity,” Schallman said. “You’d have to really try to figure out exactly what our customers were trying to get at and send the right report, but even then they couldn’t drill down into the meaningful details to understand their business better.”
Schallman knew that most of the time, high-level overviews were enough. But given the perishable nature of produce, clients also needed to get into the details from time to time in order to fix specific supply chain issues. Thanks to Domo Everywhere, he can now share interactive, collaborative analytics with each customer so they can access the timely insights they need to get produce from the farm to drive-through windows faster.
“Moving from spreadsheets to Domo Everywhere has taken our business to a totally different level,” Schallman said.
Schallman said that Domo Everywhere enables more decision-makers across each customer to leverage Domo in their own work. “Previously, we might have been only sharing insights with a procurement or supply chain specialist. Now we have users from the C-suite down to analysts at each client using Domo to assist in making business decisions.”
Lower costs, higher quality, happier clients.
By centralizing all of a customer’s produce supply chain intelligence in Domo, Danaco is able to help its customers save money and improve quality.
For example, Danaco’s chain restaurant customers usually only have enough manpower to manually audit a handful of produce invoices. Thanks to Domo, Danaco is able to audit every single produce invoice for every single customer. “That means that every single line item of the invoice is compared to the price charged versus what the price was supposed to be, which has led to substantial cost savings for our clients,” Schallman said. “To do this for every single transaction that takes place every day is a game-changer.”
When it comes to quality, Danaco can look beyond the absolute number of complaints to normalize it against total volume sold to identify where the true quality issues may lie. “One complaint in Alaska may be more important than 100 complaints in Chicago because of the way supply chains work,” Schallman said.
By using Domo to connect logistics, food safety documentation, sales details, complaints, and even weather in a single dashboard, Danaco is now able to help customers understand their produce supply chain at the granular level so they know what to do when problems arise. “Domo helps figure out the where, when, and why of a problem so we can identify how to solve it, along with understanding the root cause so we can prevent it from happening again in the future.”
Reporting that hits the spot.
Given the limited resources each customer has to manage its produce supply chain, Danaco augments scheduled reporting with Domo’s alerts to enable management by exception. “Domo does a really awesome job at this,” Schallman said. “If you’re not getting an alert, then you don’t need to go into Domo. If you do, you need to do something about it now to solve the problem. This lets people focus on the things that are really going to make a business difference. Sometimes I get no emails from Domo for a day or two, and that’s awesome because it means everything is operating as expected.”
Schallman estimates that Domo saves Danaco the equivalent of four to five FTEs for reporting, enabling him to hire people who specialize in providing more valuable services like contract negotiations or supply chain design. “I don’t need a lot of admin people to move paper. Instead, I have a lot of high-value experts who are driving business to the next level.”
As a result, Domo helps Danaco deliver far more value than its competitors, improving its business relationships.
“A couple of our customers have said to me that they don’t know how they would do their job without the information we’re providing them in Domo. One customer in particular has their produce category set up within Domo and some of their other supply chain categories set up in a different tool, and they say that you can’t imagine the difference in transparency and visibility between Domo and some of the other tools.”
Michael Schallman| CFO/CIO
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