Case Study MOD

Background

MOD Pizza has transformed the fast-casual dining landscape since 2008. They operate over 550 stores across the United States and several in Canada.

Known for their swift service and commitment to fresh ingredients, MOD Pizza is distinguished with a dual dining concept. Customers can choose from a traditional menu or engage in a ‘create-your-own’ experience, crafting their personalized pizzas.

Challenge

MOD Pizza encountered a critical juncture when a key member of their supply chain team took extended parental leave. This absence coincided with the company setting ambitious financial targets, including significant cost savings and efficiency improvements.

The dual challenge was magnifying; not only did MOD need to maintain operational effectiveness, but they also aimed to surpass aggressive financial goals. The primary hurdles were resource constraints and the need for expert guidance in strategic sourcing and contract negotiations.

Solution

In response, MOD Pizza engaged J. Gardner Group (JGG) for its expertise in supply chain management and strategic sourcing.

JGG took on the responsibility of organizing and managing several strategic sourcing events and optimizing MOD Pizza’s supply chain processes. Recognizing the importance of contract management, JGG also played a crucial role in negotiating and finalizing pending contracts.

Understanding the need for leadership in the team’s transitional period, JGG provided guidance and coaching to MOD Pizza’s supply chain team. JGG brought in their specialized knowledge in various commodity groups, which was vital for MOD Pizza’s diverse sourcing requirements.

This strategic collaboration allowed J. Gardner Group to function as an extension of the MOD Pizza team, identifying key areas where their expertise could align with MOD’s immediate needs.

Results

The partnership yielded remarkable outcomes:

• MOD achieved a total of $2.7mm+ in savings, surpassing the target.
  • $1M+ savings achieved in corrugate.
  • $696K in annual savings
  • $350K+ in transportation savings, box design, and $15K meeting of the MODs.
  • §$98K cost avoidance in dressings.
  • §$700K-$1.6M savings identified in canned food despite the inflationary market.
• A robust pipeline of strategic projects was established, accelerating progress toward company goals.
• JGG’s involvement facilitated critical training and development opportunities for MOD’s junior team members.
• The collaboration fostered a sense of shared success, significantly enhancing team morale and productivity.
• The engagement impeded operational changes, leading to long-term improvements in MOD’s supply chain strategy.