The Company
Established in 1897, the Henderson Group owns several major franchises in Northern Ireland, including Spar, Eurospar, Vivo, Vivoxtra, and Vivo Essentials. With over 120 years of experience, the Group encompasses four key companies, including Henderson Foodservice, all operating under the Henderson Group banner.
Henderson Foodservice has grown into a crucial part of the Henderson Group, generating approximately £211 million in annual revenue. They cater to over 4,500 clients across various sectors, such as hotels, restaurants, pubs, educational institutions, bakeries, wholesalers, cafes, coffee shops, workplace catering, and travel/leisure providers throughout the Island of Ireland.
The Challenge
Outdated In-House Solution
Previously, one individual was responsible for inputting deals and collecting payment from suppliers. The Henderson Foodservice IT team had built a system to support the inputting of deals which was tweaked as needed over the years but couldn’t quite meet their changing and increasingly more demanding requirements.
Des Simpson, Head of Trading, explains, “IT built a system to support the individual inputting the deals but there was no automation. It couldn’t integrate with other systems so, at regular points, we had to validate the integrity of the data manually. The system needed updating to scale with the growth of the business, for example, to allow us to invoice from that system.”
Debbie McKinstry, Pricing and Margin Manager, adds, “Our goal was to establish a central repository for all information, creating a single source of truth. We also aimed for a more robust and automated system, as our previous system had a very steep learning curve. It could take up to three months for staff to learn the old system. With Enable, the process is now much easier to understand and navigate.”
Inefficient Forecasting and Reliance on Spreadsheets
Henderson Foodservice found that relying on reports in spreadsheets was inefficient and the data was difficult to rely on. They wanted to make sure cash flow was steady, so collecting all rebates owed on time was important, as was forecasting. They were struggling to get a holistic snapshot of the business position regarding supplier rebates.
McKinstry was responsible for leading the implementation of Enable into the business. “Pulling everything together was inefficient and just not a nice job from spreadsheets. We sometimes had 2 deals covering 1 agreement. It was tough to reconcile accurately and ensure there’s a steady flow of cash coming through the business including making sure that money owed was collected on time. Then, whenever you get to the end of the year in your budget, it's difficult to forecast if you don't have a complete version of the truth. We also found it hard to set up KPIs for employees impacted by the data.”
Disorganized Paper Agreements
One of the many challenges for Henderson Foodservice was the absence of a central repository for their supplier agreements. McKinstry tells us, “Previously, we relied on old labor arch files filled with paper agreements, stored in the head of trading's office, with up to four or five files per year. This made it difficult to retrieve a specific deal from the previous year, particularly for audit purposes. Sometimes the agreements were stored in the emails of the trading controllers, so it was quite difficult to have everything in one place.”
Now with a transparent rebate management system the audit process has improved dramatically. “We used to spend a lot of time trying to find the paper version of what the supplier had agreed. The auditors are now on site much less time than they used to be. And at the touch of a button, we can provide the information that they need.”
Inadequate Reporting
McKinstry explains, “Reporting was also an issue, as we often spent hours trying to determine how much money was tied up in rebates by year-end. The figures could fluctuate daily, sometimes by thousands of pounds. We really needed a rebate management system that could help us report effectively and handle these variations accurately.”
Frequent Invoicing Errors
Henderson Foodservice invoicing process faced significant challenges with our old system, as McKinstry explains: “We frequently encountered errors with invoicing, which meant issuing numerous credit notes to our suppliers. We struggled to reconcile figures, but Enable has resolved these issues for us. Now, our invoices are accurate, and we rarely need to issue credit notes. This has greatly reduced our workload.”
Implementation
The Turning Point: The Desire to Become a Market Leader
The Commercial Director Mark Stewart-Maunder wanted more rebate visibility. Having developed and tweaked their current system over the years, it became evident that it was time to find a product that could continuously develop and grow. That’s what led Henderson to Enable.
But Henderson Foodservice wanted to do more than just solve immediate issues: They also wanted a solution that would help them move forward. Stewart-Maunder tells us, “We’re quite passionate about digital transformation, it’s been a hot topic for us over the years. We wanted to ensure we were a leader in the market.”
Swift Onboarding: 4 Months to Go Live
The onboarding process took approximately four months, a timeline set by their internal management team. McKinstry led the project management implementation and received exceptional support from the Enable team. She notes, “Their guidance through every project management step was invaluable, with weekly calls and an excellent ticketing support system. We started the implementation in September 2020, and by January 2021, we were sending our first invoice using Enable’s platform. Their dedication and ability to meet our tight implementation deadline were impressive. The relationship-building throughout the process at various levels of the Enable team was very effective.”
She adds, “The Financial Trading Team fully embraced Enable, focusing on meeting the tight implementation deadline while ensuring the system would enhance our supplier income and improve departmental efficiencies.”
The Solution
Supplier Income Increased by 2.5-Fold
Rebates constitute around 45% of Henderson Foodservice total profitability. When Stewart-Maunder joined Henderson Foodservice, they were managing millions in below-the-line revenue using a complex array of spreadsheets, folders, and numerous people. There was a significant variance in their figures, and it took weeks of hard work to pinpoint the exact amount.
Stewart-Maunder comments, “I knew we couldn't continue this way, so I insisted on implementing a rebate management system to manage everything more effectively. Enable helps us maximize revenue from our suppliers. The platform allows us to drill down into data, assess our progress against targets, and ensure we are billing everything accurately. This focus on exceeding targets can lead to larger payouts and greater overall revenue. Since then, our income has grown by 2.5-fold this year. To meet our overall margin targets, it's crucial that we stay on top of our rebate management.”
Trustworthy Figures
McKinstry shares, “Since implementing Enable, everything has improved significantly. The collaboration platform provides us with a single source of truth, eliminating disagreements over amounts owed. The fact that both we and our suppliers can access information at the click of a button is invaluable. We no longer waste time disputing figures.”
She adds, “We can now confidently report to our management team about our income from supplier rebates. Before, we struggled to provide a reliable figure, which was quite embarrassing. Now, we can present accurate and trustworthy data.”
Enhancing Visibility Across the Business
Stewart-Maunder tells us, “Implementing Enable has allowed us to be much more strategic and has significantly increased visibility across our business. In the past, traders weren’t always forthcoming. Now, we have a more open dialogue with the rest of the business, understanding what income is available, where it’s located, and managing it in a much more transparent way. This enhanced visibility is a crucial aspect of our goals.”
Successful Onboarding with 400+ Suppliers
McKinstry comments, “A key part of our success has been our strong relationship and support from suppliers. We managed to get over 400 suppliers signed up to Enable and approving terms online, a significant achievement considering we previously stored all supplier agreements in paper format.”
She continues, “Bringing our suppliers along on this journey and implementing an automated agreement approval process has been highly beneficial. Our Trading Controllers now focus more on exploring opportunities and product development with suppliers rather than manually reviewing and agreeing on terms.”
Suppliers Commitment to the Agreement Terms
Thanks to Enable, Henderson Foodservice can now view the entire approval process, from the financial trading administrator to the trader and then to the supplier, all in one place. McKinstry comments, “It’s easy to access this information. Our suppliers appreciate the automated approval process, as it eliminates the back-and-forth emails we used to have.”
Stewart-Maunder tells us, “By having all agreements centralized and visible, we can easily remind suppliers of their commitments. This centralized approach has also allowed us to incorporate additional terms into our agreements with suppliers. As we progress, suppliers will be required to commit to further terms when signing agreements with us. Having all these agreements in one place enables us to hold suppliers accountable, which is crucial for maintaining the integrity of our partnerships.”
Harleigh Joel, the Financial Trading Supervisor at Henderson Foodservice, comments, “Collaborating with suppliers through Enable, where they can access the link to sign up and view the terms, has been highly beneficial. Their sign-up confirms their agreement to the terms, providing us with a legally binding document in case a supplier fails to fulfill their payment obligations. This adds an extra layer of protection for us, which is very valuable.”
Significant Administrative Time Savings
Henderson Foodservice have saved numerous hours of administrative work by transitioning from their old, cumbersome green screen system to Enable. The trading team now spends more time discussing opportunities and product development with suppliers, rather than manually reviewing terms.
Stewart-Maunder notes, “In terms of time saved, Enable has freed up our traders by consolidating all agreements into one accessible platform. The visibility of how we’re meeting targets is now much more readily available. This efficiency has allowed us to invest in additional resources.”
Joel adds, “Enable has shifted our focus from creating data to analyzing it. We now input our deals into Enable and receive meaningful data in return. This allows us to spend more time evaluating how to enhance our business and increase profitability, rather than spending hours on file creation, Excel sheets, and pivot tables. With Enable, it’s just a matter of clicking a button to download and compare data.”
How The Financial Trading Team Influence Forecasting
The Financial Trading team now has a much more impactful role in forecasting compared to before, when their focus was primarily administrative. They now contribute significantly to budget planning and revenue generation. The team actively analyzes buying patterns and engages with traders on strategic decisions, such as adjusting purchase volumes or adding promotions. This shift has brought more depth and strategic value to their role, moving beyond simple administrative tasks.
Joel says, “Enable’s forecasting module has become an essential tool for us, now used weekly as we approach the end of the year. Its accuracy depends on the quality of the data we input, so it’s crucial to get it right from the start. The module allows us to download detailed forecasts and drill down into the data, comparing performance between suppliers and across different years (e.g., 2022 vs. 2023 and 2023 vs. 2024). This capability is invaluable for tracking our progress and making necessary adjustments in advance, so we know exactly where we need to focus to meet our targets.”
Streamlined Annual Negotiations
Enable has become an invaluable tool for the Henderson Foodservice trading team during annual negotiations, enabling capabilities that were previously unattainable. They can now analyze spending and rebate patterns among similar suppliers to drive better terms while staying competitive.
Joel comments, “A standout feature of Enable for us during annual negotiations is the rollover process. Previously, rolling over deals year after year involved a lot of manual administrative work. Now, with Enable, we can request the rollover of any deals ending on December 31st into the following year.”
She continues, “This automation ensures that no one in the business—whether a supplier, trader, or internal team member—needs to worry about whether a deal will carry over into the new year. Enable handles this quickly and efficiently, and we conduct a final audit to add a layer of human oversight. This way, we avoid missing out on any potential income or invoicing errors.”
Meaningful Data Insights
Joel tells us, “I would highly recommend Enable because it organizes and presents our data in a more meaningful way. It has facilitated better integration between teams by making everything easily viewable for everyone. Enable has allowed us to spend more time analyzing data rather than creating it, providing a one-stop shop for all our needs. Enable consolidates everything into one system, streamlining our data management and enhancing our ability to derive meaningful insights.”
Takeaways
Henderson has experienced a significant win with the automation of the invoicing process. This has freed up substantial time for the team to focus on analyzing data and making informed decisions.
The implementation of Enable's solution has provided Henderson with the tools to gain a complete version of the truth regarding their business position.
Henderson is now set up for future growth, with confidence in their rebate management effectiveness. As they progress in their digital transformation journey, they aim to maintain a market-leading position in the foodservice industry.