Vertical Integration a Key Ingredient of Success
With over 5 million cakes sold in the last Financial Year across Australia and New Zealand, it takes an army to ensure that the cakes consumers order online via our website, see on a facebook post or on a billboard are available in store and on demand.
Key to making this happen is the ingredients supply operation established by the business over 20 years ago – United Network Suppliers (UNS). UNS ensures the supply of raw materials to the majority of the TCS network of stores and has been invaluable in its ability to adapt quickly and efficiently to the changing needs of the business and customers alike.
‘Having UNS vertically integrated with the business means that the unit is across promotional plans and sales trends analysis in real-time, allowing for the accurate forward planning of stock across the network and reduces the risk of falling short of critical elements during key periods, helping to protect against an over reliance on suppliers and the impact of uncontrollable factors in manufacturing’, says Tony Cameron – UNS General Manager.
Vertical integration has enabled The Cheesecake Shop to develop and maintain a direct and strong relationship with its suppliers, which, in combination with its purchasing power, has allowed The Cheesecake Shop to negotiate strategically with key suppliers, the benefits of which flow directly through to TCS franchisees.
When it comes to ingredients, The Cheesecake Shop uses only the finest quality and sources from all over the world. For example the sour cherries used in the top-selling Black Forest torte, come from Poland, where as the rainbow sequins on the ever popular Rainbow Cake are from the United States, not to mention the mouth-watering Belgian Chocolate which is a key ingredient in The Cheesecake Shop’s range of mudcakes.
The Cheesecake Shop is no stranger to cream and cheese, arguably being Bulla’s largest customer in Australia, using over a million litres of thickened cream in the last financial year. With the rise in consumer trends towards healthier eating over recent years and the increasing demand for Gluten Free alternatives in the food industry, The Cheesecake Shop was able to bring to market a Gluten Free Chocolate Cake and later on a Gluten Free Carrot and Orange Cake which were developed exclusively for The Cheesecake Shop with suppliers in Australia and New Zealand.
TCS also has multiple warehouses across various States in Australia, has a strategic partnership with a third-party distributor in New Zealand and uses a central manufacturing model in the United Kingdom.