Friday, June 21, 2013

Compete Using Strategic Sourcing To Achieve Goals

Foodservice purchasing experts focus on creating  a competitive advantage by sourcing products “outside of the box” typically created by standard supply-chain models. Ask any executive in major chain procurement what separates their performance from emerging chains, buying groups or distributor buyers and the answer may surprise you.
Their reply is likely to place saving money lower on the list.  After all distributors, suppliers and brokers always offer the best overall product solutions for the business, right?  On the other hand, we must consider that distributor account representative must maintain company earned income, brokers earn commissions selling products in the distributor' warehouse, staff buyers have limited sourcing and culinary experience, and GPO's (group purchasing organizations) partner with lead suppliers to earn money and offer  members a limited number of brand alternatives.    
For foodservice sourcing to be truly strategic, it must go outside of the supply-box created by these restrictions. A world-class process brings value to the organization in many ways including saving money; the foremost of which is establishing a direct relationship with suppliers that are committed and capable of contributing to profitable growth. 
Here are 5 strategic sourcing goals used by SPS in managing chain purchasing and providing chef services:

Goal #1: To reduce risk. The brave new foodservice world requires that buyers understand how to compete in the international marketplace for proteins and grains once available and affordable in the U.S.A. 
Building your menu based on being able to consistently buy certain imported seafood species and beef sub-primal cuts or chicken wings at affordable prices can be risky business. Strategic sourcing enables your company to sustain a continuity of supply, quality and price, even in the face of the unexpected markets and supply disruptions.    

Goal #2: To improve supplier performance. Reducing the delivered to distributor unit price on your order guide is nice, but meaningless if you don’t hold suppliers to formal product, specifications, and distributors to on-time and complete deliveries.  Not to mention quality defects or changes in product yield that affect your business.. Strategic sourcing is only truly successful when you can achieve a true cost reduction and improve distributor and supplier performance. 
Goal #3: To drive profits to the bottom-line.  Managing cost by controlling the landed cost of goods to your distributor the first step in the process. Transition from distributor or GPO controlled center-of-the-plate purchases and you can avoid the projected 3.5% food price increases through the end of the year.  Then, hire a professional to contract directly with strategically selected suppliers; then maintain high-performance standards by levering total purchases and managing future commodity costs.

Goal #4: To bring in innovations from the food supplier base. In today's competitive restaurant and hotel business you need a constant flow of new sources of supply and options to release the full capabilities of your culinary and purchasing team. Suppliers can be a great resource only if you are selecting qualified partners world-wide from “outside” the box build by many links in your supply-chain.  Start to recover your potential through sourcing and watch your Culinary-Purchasing team ROCK.

Goal #5: To support the organization's social responsibility goals. Today’s operators must support green, healthy, diversity and other social responsibilities; these principles can be incorporated in your strategic sourcing plan and services like SPS can help move your organization towards those goals. 

Discover the principles of the strategic purchasing process and start seeing immediate benefits. Empower your organization to exceed expectations by out-SOURCING and out-SELLING the competition.   
To Higher Profits!   Fred                                                                                                                                                                                                                                                   
Fred Favole is President of Strategic Purchasing Services (SPS) and Founder, Chef Support Services, a foodservice consulting firm specializing in outsourcing, culinary support, and spend management services. Fred at (912) 634-0030, email: Fred@Strategic Purchasing 

Tuesday, June 11, 2013

Strategic Sourcing Makes Menu Making Easier

How many times do you wish you had extra professional staff?

Chef Support is a unique program offered by America’s most experienced purchasing firm to address the product challenges faced by corporate chefs and menu professionals.


Our service provides real-time access to sourcing experts that use decades of foodservice experience to locate the exact product you need, while handling logistics from farm (or plant) to table.


Quickly locate a winning L.T.O. item, replace high cost protein suppliers, expand your CORE items bid list, select #1 product overstocks, or simply discover your next great supplier.


Together, working with Chef Support Services (CSS) you will quickly transform the sourcing process into a flexible, powerful and profitable culinary resource. When you select products outside-of-the-supply-box without the boundaries imposed by distributors, GPO's, brokers, buyers or sales representatives, you unleash the true potential of your talent and menu. 


Menu Making Made Easier  w/ No-Out-Of Pocket Expense.

Contact us to see how we can help you!


Office: 912-634-0030

Fax: 912-634-0031


Fred Favole, CPO (912) 399-1427
Dan Patterson, VP Services (678) 315-2389
Catherine Gruber , Manager (912) 623-0030