How Sodexo Mitigates Inflation in the Gulf of Mexico

•  Managed the cost of inflation with Sodexo's dynamic supply chain management approach.
• ·Saved clients 32% on average in 2022 while maintaining high service quality

Overview

Sodexo Energy and Resources responds quickly to our clients' operating environment changes. For the past two years, our offshore teams saw major price changes in food products globally, and our teams sought competitive prices for more than a dozen client sites in the Gulf of Mexico.

Working with our global, national, and local supply chain resources, Sodexo Energy and Resources proactively mitigated costs as much as possible amid inflationary pressures.

Inflation on the Rise

From late 2020 through 2022, food prices jumped due to COVID-19, supply chain disruptions and the conflict in Ukraine. Without our proactive approach, this amount of inflation could have resulted in a significant cost impact on our clients.

According to the U.S. Department of Agriculture, the Consumer Price Index for Food is expected to continue its climb into 2023 by about 8%. That's on top of a 9.9% rise in 2022 and a 3.9% increase in 2021.

At the same time, nationwide supply chain disruptions and staffing challenges persist. Through it all, Sodexo Energy & Resources has maintained a high quality of service, achieving 4.6 out of 5 stars in the 2022 Global Offshore Consumer Satisfaction Survey.

Our Approach

Through our buying power and proactive mitigation actions, Sodexo kept inflation below the government average, saving our clients an average of 32%.

When supply chain issues make getting the products we need difficult, we shift to buying local, saving our clients time and money while ensuring employees get fresh, satisfying food. By having more than 26,500 recipes in our proprietary menu management system and our culinary personnel being certified by independent and reputable culinary schools, our Sodexo team can swap the main ingredients of a recipe, like chicken thighs instead of chicken breast or rotating starches and vegetables, without giving up quality and the nature of the dish.

Sodexo's strong procurement contracts and more than $24 billion in purchasing power allow us to anticipate challenges and mitigate risks proactively. We source locally and regionally, supporting local businesses and leveraging the local supply chain when there are national disruptions.

We closely monitor food prices with daily, weekly and monthly comparisons. Through analysis and planning bulk purchases three to four months ahead, we ensure our clients get the best prices and the food they need when they need it.

For our clients in the Gulf of Mexico, our 40,000-square-foot warehouse stores bulk purchases safely for extended periods of time

Better Than the Industry Standard

Our Gulf clients have been our trusted partners for a combined total of nearly 60 years. We serve 1.5 million meals across client sites annually, maintaining the quality of life for offshore workers despite global challenges.

Sodexo Energy and Resources focuses on raising the bar for our clients because they deserve better than the usual industry standard. We know how important it is to keep costs consistent in the face of inflation, and we have the tools and the insight to help you better serve your people.