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Purchasing and Cost Control Programs

In this day of electronic communications we have entered a new realm of purchasing in the food and beverage industry. After deciding on the menu and specifying exactly which products are acceptable to use to make these menu items it is time to place the burden on the salesperson. Bidding programs, integrated programs in interface inventory, purchasing and receiving are everywhere. The question is what works best for your business.

Gone are the days of having to "give" all of your business to one purveyor to get the best prices on your primary items. This may still be beneficial based upon the level of service you receive from the vendor. Many suppliers will now provide computer hardware and software to streamline your purchasing process. Larger accounts are tending towards full bidding software packages where all vendors must bid weekly for the business and the computer awards it to the lowest bidder item by item with the exception of specific stock items (where only one vendor carries the specific item you demand or is carrying it in a special stocking agreement).

We can help you streamline your purchasing and get your vendors working harder for you.

This ties directly into your cost control programs. Again technology is making it much simpler to calculate what your ideal (theoretical) costs should be verses what you are actually performing. These programs can also help identify where the missing dollars are going. It’s a lot easier to find the problems when you know where to look verses…"hum, we’re one half percent over in food cost, go find where were are losing $500.00 per week…"

Just the simple process of increasing the frequency and accuracy of inventories can reduce costs substantially. We’ll explain this to you in person. Rest assured there is a ripple effect to even this simple procedure change in your operation.

Again our experience comes to play in providing significant approaches to controlling and reducing costs. We’ve run major corporations and high volume operations where saving 1% cost can be worth $50,000 - $200,000 per year. Again when working in these volume levels we have worked with suppliers to create specialized products where we can save purchasing costs.

Let our experience work for you!

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