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History of QSCC
QSCCSM draws its origins from Wendy’s® Supply Chain Management (SCM) department. Together, Wendy’s and its Franchise Advisory Council (FAC) both recognized the mutual advantages that could be realized by converting SCM into an independent purchasing cooperative controlled by operators of Wendy’s restaurants.
Investigation, Research and Negotiations
In 2007, FAC formed a Supply Chain Sub-committee to represent the franchisees’ interests in working with Wendy’s to investigate the formation of a co-op -- and to ensure integrity, transparency and process for the supply chain.
In 2008, Wendy’s merged with Arby’s to form the Wendy’s/Arby’s Group (WAG). WAG and the FAC Supply Chain Sub-Committee agreed to form a new co-op. The Sub-committee represented franchisees in negotiations with the Brand to determine the fairest and most effective way to set-up a new co-op.
The Sub-Committee retained Supply Chain Associates, a consulting firm, and Frost Brown Todd, a legal firm who provided significant experience in co-op design and operations. Based on the counsel of these firms and months of diligent research and careful consideration, the determination was made that a non-profit co-op structure would best meet the needs of both Wendy’s franchisees and the Brand.
Adopting a non-profit structure enables the co-op to provide the optimal balance between high-quality products and services and the lowest-possible delivered costs. When annual revenues exceed the co-op’s operating expenses, the cooperative structure also enables the co-op to return excess income to its members on a pre-tax basis in the form of patronage dividends.
Agreement Reached, QSCC Formed
In 2009, WAG reached agreement with the FAC Supply Chain Sub-committee to form QSCC, which is jointly owned and democratically governed by Wendy’s U.S. operators (both company and franchise) who choose to become members of QSCC.
Wendy’s and Wendy’s Restaurants of Canada Inc. both establish and enforce product and service specifications as the quality assurance gate keepers for both QSCC and QSCC Canada, a wholly owned subsidiary. WROC and Wendy’s also approve authorized suppliers and distributors.
QSCC’s Board of Directors includes eight franchisees (seven from the U.S. and one from Canada) and two Brand representatives. After an exhaustive search, QSCC’s Board hired John Inwright as President in November 2009.
In January 2010, QSCC began operations. Nearly all former SCM members, including the senior leadership team, joined the co-op.
QSCC’s U.S. operations are based in Dublin, a suburb of Columbus, Ohio. QSCC Canada is based in Oakville, a suburb of Toronto, Canada. VP Lorraine Green leads QSCC Canada operations and reports to John Inwright.
QSCC’s Board maintains a close working relationship with co-op executives in the U.S. and Canada to ensure a shared vision, mission, and message for our members. The first annual Board of Directors elections were held in November 2010.
Second Co-op Formed Then Dissolved, Wendy’s Functions Absorbed Into QSCC
QSCC reached an agreement in 2010 with WAG and ARCOP, Arby’s supply chain cooperative, to form the Strategic Sourcing Group Co-op. SSG developed and managed programs for capital assets, contract services, energy, equipment, and smallwares for both the Wendy’s and Arby’s brands.
In 2011, WAG approved the sale of the Arby’s brand and SSG was dissolved. QSCC’s Board approved adding management of SSG’s product and service programs on behalf of the Wendy's system into our co-op effective May 2.
QSCC’s Dublin team has almost tripled in size since the co-op’s formation. We continue to hire highly qualified supply chain professionals to provide enhanced services to our members. Currently, operators representing more than 94% of Wendy’s U.S. restaurants are QSCC members.
We are the third-largest co-op in the quick service restaurant industry with $3 billion in buying power, enabling us to provide more favorable pricing and improved distribution service levels for our members.
Quality continues to be the foundation for success at Wendy’s … and at Quality Supply Chain Co-op, our name says it all. Delivering quality is what we focus on every day. We’ll never cut corners in our efforts to be a best-in-class supply chain co-op.