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Smarter Inspections, Better Margins

Hey Reader,

If you want to improve your yields, reduce cost variance, and make smarter purchasing decisions, don’t start on the production floor—start at the dock.

Over the past four months, one FreshOps partner captured over $900,000 in credits through enhanced raw material inspections. That’s not a rounding error. That’s the result of disciplined, consistent evaluation of inbound product. And it’s just the beginning of what this approach unlocks.

Here’s why raw material inspection should be your next strategic lever.

The Commodity Illusion: Not All Meat is Equal

In protein operations, it’s easy to fall into the mindset that raw materials are commodities. After all, boxed beef is boxed beef, right?

Wrong.

Across beef, pork, and seafood, we’ve consistently seen that supplier performance is highly variable. Not just between companies, but also between plants inside the same supplier network. These variations affect:

• Yields (more trim, lower usable product)
• Labor load (more handling or rework)
• Quality complaints
• Overall cost per pound

And here’s the kicker: without internal performance data, you’re flying blind.

Become a Smarter Buyer: Like Counting Cards in Vegas

The most competitive operators treat raw material inspection data like a blackjack player treats a running count.

They’re not just reacting. They are strategically increasing the odds of a winning hand by making smarter decisions than everyone else at the table. Here's how:

• Audit Intentionally, Not Infrequently: Inspections take time. Prioritize audits based on product value and historical supplier or plant performance to get the highest return on effort.
• Scorecard Supplier Performance: Track yields, quality issues, and credits by supplier and plant.
• Leverage Data in Negotiations: Bring hard numbers to the table, not just gut feel.
• Route Future Buys Smarter: Steer volume toward the suppliers and facilities that consistently deliver better results.

You don’t need a massive tech stack to do this. You need a disciplined process, shared accountability, and someone to own the feedback loop with Procurement.

Real-World ROI: $900K in 4 Months

We recently helped one partner in the beef category implement a structured raw material inspection program and realized:

• $900,000+ in supplier credits for non-conforming product
• Clear visibility into plant-level supplier variability
• The foundation for smarter future purchasing decisions

The biggest win is laying the groundwork for strategic sourcing improvements. The supplier scorecard data is now in place and ready to influence future buying cycles when contract timing allows.

This isn't theory. It's measurable, repeatable operational excellence.

How to Get Started

You don’t need to boil the ocean. Start with a focused, repeatable process:

1. Confirm the Supplier's Spec: Make sure you have the official specification your supplier is supposed to meet. Not your internal target, but their documented commitment.
2. Train Your Team: Keep it straightforward. Your inspection team doesn’t need to be perfect. They just need to be consistent.
3. Capture Audits Electronically: Ditch the clipboards. Use tools that ensure audit data is entered electronically and aggregated. One thousand inspections won’t help if the data lives in one thousand places.
4. Review Monthly with Procurement: Use aggregated data to identify trends, outliers, and negotiation opportunities.
5. Share Results with Suppliers: Make performance visible and actionable. This isn’t just a paper trail. It’s a feedback loop.

Final Thought: Inspection = Intelligence

In a margin-tight industry, the winners aren’t just the fastest or biggest. They’re the smartest. If you’re not measuring supplier performance, you’re leaving money on the table and handing your competitors the edge.

It’s time to stop accepting variability as the cost of doing business.

Start inspecting smarter and start winning more hands.

FreshOps in the Field

If you enjoyed our recent issue on The Necessity & Fallacy of Planning, check out my latest appearance on the MeatingPod podcast by MeatingPlace.

In Episode 237: “How to Play the Long CapEx Game,” we expand on that topic and talk about how long-range capital planning must move beyond the immediate problem solving. The conversation covers a different framework to evaluate CapEx purchases, the critical groups to involve in CapEx conversations, and why you should have a consistent rhythm to discuss your future based assumptions.

​Listen now​

It is a practical listen for protein leaders who want to drive lasting improvements in complex environments.

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—
​Judson Armentrout​
FreshOps | Practical Insights for Fresh Food Operations

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P.S. IFFA Recap is available!

This year’s IFFA show in Frankfurt was packed with future-shaping insights from automation designed to address labor gaps to packaging trends that haven’t even reached the U.S. market yet.

I put together a focused recap specifically for protein producers and retailers. It’s designed to help you anticipate what’s coming and begin realigning your strategy now, before the next wave hits.

Three ways to access it:

• Single Chapter – $245
• Full Report – $995
• Full Report + Consultation – $1,495

Learn more and purchase here: https://buildingblock.solutions/iffa-recap-report​

P.P.S. Want to know 5 Cost Saving Upgrades from IFFA?

Not sure if the Recap report is for you? This FREE 2 page guide shares some of our insights that could provide immediate value to your operation.
​Get the free pdf guide here​
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