Clearly the cost of purchasing is an important feature of whether a company makes a profit or a loss. However, the cost of purchasing is only a small element of the whole process of calculating profits and the success of a company.
Whilst it is important that one is paying the commercial rate, the purchase price is only a small element of the factors that constitute the profitability of a business. If by aggressive purchase negotiations one is able to reduce the ingredient cost of a dish by 10p or 20p is this “the be all and end all” of everything. What is the point of negotiating the cheapest price if you cannot get delivery of the products when you want them or that only half of the goods are of the required delivery.
We consider that a more major factor of success is quality of product, quality of service, reduction of waste. In fact surveys throughout different industries have put purchase price into 6th position – should we expect that the catering industry is any different; we think not!
We believe that a balanced approach is needed to purchasing to ensure that you receive the goods when you want them and that they are of an acceptable standard.
If you have any concerns about purchasing then please contact us. We have a network of suppliers throughout the UK and Ireland who provide quality products complete with traceability, they are used to delivering to tight delivery schedules and offer competitive prices to users of KitMan.
For more information on the Catering Procurement