How HelloFresh Cut Supplier Costs by 70% with Quality Management

HelloFresh, the leading global provider of fresh food at home, turned to Intelex, the global leader in environmental, health, safety and quality (EHSQ) management software, as part of the company’s journey to optimize customer experience and improve supplier relationships.

The Supplier Quality Management Team at HelloFresh is using Intelex to follow documentation requirements, conduct audits and follow up on supplier corrective actions to ensure families across North America can whip up delicious dinners.

“The partnership between HelloFresh and Intelex has given us the opportunity to take an out-of-the-box tool and mold it to our needs,” said Tim DeWolfe, Associate Director, Quality Systems at HelloFresh.

“Through the last two years with Intelex, we’ve set up a document management system that supports Safe Quality Food (SQF) requirements. We’ve transitioned from a costly supplier management tool that lacks internal oversight to true internal Supplier Quality Management with audit functionality with Intelex, allowing us to focus time and effort to implement real corrective actions for some of our recurring problems.”

Challenge

HelloFresh's biggest challenge was embracing its growth and getting past the idea that it was a small startup. This meant enhancing its approach to processes, standard operating procedures (SOPs) and corrective actions for nonconformances.

Optimizing Customer Experience and Improving Supplier Relationships

HelloFresh's commitment to providing families with fresh, delicious and sustainable meal kits meant that a reliable supply chain was crucial.

To enhance the customer experience, they needed a system that would not only ensure the quality and safety of their food but also manage and improve relationships with their numerous suppliers.

Intelex's environmental, health, safety and quality (EHSQ) management software provided HelloFresh with the tools necessary to follow documentation requirements and conduct audits efficiently. By facilitating better supplier corrective actions through Intelex, HelloFresh could maintain a high standard of quality, which directly impacts customer satisfaction.

Improving Supplier Quality Processes, SOPs, and Corrective Actions for Nonconformances

HelloFresh recognized the need to transition from a startup mentality to a more mature quality management approach.

Intelex's software suite enabled them to establish better supplier quality processes and create a centralized hub for their standard operating procedures. This transition was crucial for maintaining the consistency and reliability of their meal kits.

Furthermore, Intelex's Nonconformance Reporting and Corrective Action Reporting modules helped HelloFresh to identify areas of noncompliance quickly and implement effective corrective actions, thereby reducing the occurrence of quality issues and improving overall operational efficiency.

Costly Supplier Management Tool Lacking Oversight and Audit Functionality

Prior to Intelex, HelloFresh was utilizing a supplier management tool that was expensive and lacked transparency into the internal Supplier Quality Management processes, as well as the ability to conduct audits.

Intelex provided a more cost-effective and comprehensive solution, allowing for direct engagement with suppliers through the platform.

Suppliers could upload documentation and respond to corrective actions within the system, which significantly reduced overhead costs and streamlined the quality management process. The improved oversight and audit functionality enabled by Intelex allowed HelloFresh to have better control over their supply chain, contributing to significant cost savings—from $1,000 per year per supplier to $300 per year—and enhancing their ability to maintain rigorous food safety standards.

Intelex Solution

Inspection Management: Users (food safety, warehouse, quality and production employees) were able to effectively perform Supplier and Food Safety Audits as well as have daily, weekly, monthly and quarterly checks to meet Safe Quality Food certification requirements.
Corrective Action Reporting and Supplier Corrective Action Requests (SCARs): Quality and food safety teams were able to drive efficiency and accuracy when completing SCARs.
Document Control: It is used as a centralized repository for SOPs and a go-to source for employees to get access to training.

Results

They reduced supplier costs by 70% (from $1,000 per year per supplier to $300 per year – which is amplified when you factor in 600+ suppliers).
By incorporating Intelex software as a part of their post-pandemic business continuity plan, they were able to enhance their supply chain management system.
Managers in key departments successfully increased employee engagement by championing task manager and transitioning SOPs to Intelex software.
They continue to minimize food waste throughout the supply chain through use of data analytics.

HelloFresh