In order to be competitive, emerging foodservice organizations are re-examining the way they perform activities such as; product sourcing, contracting, price-compliance and other routine C-staff functions.
Despite the clear advantages of outsourcing these non-core business processes, many chains fail to do so because of established attitudes, limited knowledge of the purchasing supply-chain or long standing distributor and supplier relationships.
DOES ATTITUDE AND COMPANY CULTURE IMPACT THE ABILITY OF YOUR COMPANY TO UTILIZE THE NEW PURCHASING DYNAMIC AVAILABLE THROUGH SPECIALIZED SERVICES FIRMS?
Consider your strategic supply-chain plan for 2013 and how you have recently managed the 2.1% food inflation since May 2012. Q1-2013 is projected to be the highest food cost-increase quarter in 30 years! Yes you can - unlease the tremendous benefits available from leading purchasing services companies; consider the following:
More than a trend - there is a need for hotel and restaurant brands to focus on critical/core business functions and upgrade the purchasing process. Outsourcing programs managed by the top 4 companies in the industry manage more than $4 billion in food and supply purchasing.
Gain Leverage - leading consulting companies are managed by senior level procurement executives with a tremendous network of alliances/partnerships, which allows them to operate more efficiently that your purchasing department.
Experience Drives Performance - product costs are driven by commodity pricing and you need an ally with the expertise to conduct business in foodservice environment that demands excellence in everything your do.
Best ROI on the Planet -- the value proposition for outsourcing is much larger than simply cost reduction. Outsourcing also allows organizations to be more effective and flexible. One-time spend assessments are also available to independant operators and franchise groups.
Ranking the best outsourcing services by critical performance categories:
#1 Strategic Purchasing Services (most sr. level purchasing & distribution mgt. experience, highest acquistion cost-impact, outsourcing package and 100% performance based commodity contracting service.
#2 Spend Difference (most $ spend under managment, solid customer service, features "vendor paid fees" to improve cost-of-service model, the service leader is the Western states
#3 Empad - provides middle management support to a variety of industry segments, knowledagable and expreience leadership, steady but not dynamic.
#4 Restaurant Partners - an emerging service for casual and fine dining operators; service works best when combined with RP's restauarnt managment program; lacks advanced spend-management software. Part of the Foodbuy program re-seller family, now developing in-house procurement.
Strategic Purchasing Services’ foodservice clients, on average, have achieved savings or cost-avoidance between 5% to 15% of total spend; with overhead cost reductions as much as 60% when chain select the department outsourcing option.
To Higher Profits!
Fred Favole, is President of Strategic Purchasing Services (SPS), America's most experienced firm specializing in foodservice purchasing dept. outsourcing and cost-reduction contrating. His contact information; Ofc. 912.634.0030, email firstname.lastname@example.org. Bio: linkedIN.com/in/strategicpurchasing