Interstate Bakeries Base Case

By Baselinemag  |  Posted 2002-01-01 Print this article Print

Interstate Bakeries has not relied heavily on technology. Now, the $3.6 billion maker of Twinkies and Ho Hos is diving into e-procurement. The goal: increase buying power, lower costs.

Interstate Bakeries Base Case

Headquarters: 12 East Armour Boulevard, Kansas City, Mo.

Chief Information Officer: Michael Holdgraf, Vice President of IS

Senior Vice President, Purchasing: Brian Stevenson

Financials in fiscal 2001: $3.5 billion in revenue, $61.1 million in net income, 2% net profit margin

Challenge: Transform paper-based processes into electronic processes; cut indirect procurement costs by buying on the Web; lower prices on contracts with suppliers; and put billing online

Baseline Goals:

  • Knock $6 million off $120 million in indirect purchasing costs
  • Replace check-writing with electronic payments
  • Equip 64 of IBC's bakeries to buy online this year
  • See a return on the company's $1.5 million investment in the project within a year

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