2
ABILITY
Lowering costs and strengthening margins
Through improved operations—something we call Total Margin Management—we’re supporting the health and growth of our business. Over the last four years, we’ve saved millions of dollars through improvement and simplification of processes.
Sizable Savings

$15M

Supply Chain savings

$6M

Dairy Foods Revenue Management

$60M (potential savings through)

Design-to-Value initiative

$28M

Source-to-Pay savings

 
A major transformation in enterprise-wide vendor purchasing delivered more than $4.2 million in annual savings. Similarly, the Kozy Shack team delivered $1.5 million of profit improvements by streamlining management of in-store promotions, advertisements and temporary price reductions.
Sharing the savings
Our member-owners also benefit from our margin management efforts through a variety of programs that cut costs and improve the efficiency of their businesses.
Buying-in to the BuyPoint™ Program
Looking for a more cost effective way to purchase a variety of products including tractors, facility supplies, office supplies and tires, Producers Cooperative Association in Bryan, Texas, began partnering with Land O’Lakes’ BuyPoint™ service in 2014. “The BuyPoint™ program allows us to take advantage of Land O’Lakes’ size and scale with minimal investment on our part,” said General Manager James Deatherage. “The team has been easy to work with and we are already seeing savings on products that we’ve purchased.”

After just a few months, Producers Cooperative has been happy with the results and encourages other member cooperatives look into the BuyPoint™ program. “We are glad that we investigated the program and recommend that others take the time to see if it can provide value to their organization,” Deatherage said. “The more of us that purchase together, the lower our prices go.”
 
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