Grocery prices have risen 25% since 2019. This tech company could help cut them.

3 of the Top 50 Grocers are using Portager's platform.

Gray Skinner

Nov 26, 2024 | 3 min read

It’s one of the most talked-about topics in mainstream media. Launched 6 months ago, Portager enables buyers to evaluate a greater number of proposals in greater detail.

There isn’t a single culprit behind the cost increase. There are many — inflation, corporate greed and supply chain issues. However, one issue is often overlooked: innovation.

Buyers at big box grocery stores have a big job. Each is responsible for purchasing products for four to five categories (examples: cereal, condiments, frozen dinners).

Up to 90 vendors could submit proposals per category. Negotiations are handled the old fashioned way — emails, spreadsheets, phone calls and in-person meetings.

It’s impossible to assess every proposal. In an effort to be efficient, buyers evaluate bids from large, blue-chip brands — think Kraft-Heinz — that cover multiple categories, first.

“A smaller vendor with a single category might be more inclined to play ball, but with the sheer volume of proposals it's difficult to evaluate all of them ” explains Alex Kopplin, a principal at Conlego, a consulting firm specializing in supermarket buyer-vendor negotiations.

This creates an imbalance in bargaining powers, and doesn’t allow for a full field of competition. Less competition can lead to higher prices.

Data Overload

The volume of vendors isn’t the only overwhelming part of the process.

Buyers must dig through mountains of data to determine “to purchase or not purchase”. The decision involves countless details from slotting fees — the price vendors pay to place their product on a specific spot on the shelf — to support — sales, discounts, and coupons (these costs are covered by vendors).

“Decisions are not always obvious and it's difficult to plan for every scenario.”

The Solution

Conelgo set out to build a better way to buy.

“Even with the support of consultants like us, supermarkets cannot review every single proposal or identify every opportunity,” says Kopplin. “Software was the best way to scale our skillset.”

The company partnered with MasterBorn to turn their industry expertise into tech. The Polish-American software development company has engineered three unicorns.

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What is Portager?

Launched 6 months ago, Portager enables buyers to evaluate a greater number or proposals in greater detail.

3 of the Top 50 Grocers in the U.S. are already using the online platform,according to Kopplin.

How it works:

With Portager, communications are centralized and streamlined. Vendors submit proposals through a single online portal.

Then, an algorithm analyzes the proposal data alongside the store’s internal sales data. It evaluates the information like a Conlego consultant. MasterBorn engineered the algorithm to mirror the company’s approach.

It identifies the best buys and even suggests counter offers. These auto-populated insights make it easy for buyers to plan.

“It’s like starting on third base instead of first,” explains Kopplin.

Buyers can quickly type-in and test scenarios. Portager postulates the outcomes. Counter offers are created and submitted to vendors directly via the platform.

“It's a level of organization and transparency that this industry has not seen. It provides a 360 view.”

That 360 view has buyers five times more efficient, according to Kopplin.

“It’s early, but we are already seeing a significant increase in proposals reviewed and smarter deals.”

Smarter deals translate to better buys. Better buys are likely to cut costs at the supermarket.