IN ASSOCIATION WITH
n e-procurement system enables operators to procure the food items and other goods they require for their business via the internet. Used correctly, it can help streamline the purchasing process and tighten controls over spending and product choices.
A E-procurement marks a move away from
E-procurement offers a real-time view of profit and loss and purchasing indicators across individual units or a whole business.
VISIBILITY
the traditional paper-based approach in the hospitality sector and manual purchasing. Typically, restaurant managers, chefs and caterers phone their suppliers with their food and beverage orders, use paper delivery notes and invoices, and perhaps value their stock using an Excel spreadsheet.
In this scenario, there is no way of obtain- 2 3
4 5
www.thecaterer.com Any overpricing on invoices is picked up. COMPLIANCE
Line-by-line stock management reduces human error, while procurement lists can be shaped by sales data from EPoS systems.
ADMINISTRATION SAVINGS
ing a real-time view of the profit and loss of the business, and operators run a greater risk of overpaying suppliers and ordering more stock than they need to service their sales. With a paper-based system “nothing can be tracked effectively”, says James England, a director at cost-control software special- ist Fourth. “If you can’t measure it, you can’t manage it. It’s too easy to overspend and to lose valuable stock.” For many operators their first experience of ordering stock online may be through the use of an ordering portal that some of the main wholesalers, such as Bidvest and Alliance, have been offering for some time. But if you want to manage purchases from multiple suppliers and start moving towards a sophisticated end-to-end purchase-to-pay (P2P) system, then an outsourced e-procure- ment system is the way to go.
Operators can order items at off-peak times. CONVENIENCE
Electronic catalogues allow you to build recipes and provide allergen and nutritional information in line with regulations.
ALLERGEN INFORMATION
Begin with purchasing For operators new to e-procurement, Eng- land advises first moving over to an online purchasing system so they can guarantee they are paying only what they have agreed to pay. This is achieved by publishing electronic catalogues from the different suppliers in the system, showing the products available at the agreed prices. Typically, a multi-site business will have had these purchase lists validated by head office, which will have created menu guides and negotiated prices with suppliers, so that every site is buying at the same price and, where required, the food and drink offer- ing is consistent across the estate. Orders are emailed and acknowledged by suppliers. If certain items are out of stock, the supplier might reply to say they have included the next most similar item or they cannot fulfil that part of the order. When items are due for delivery, a delivery note is sent, which will be matched against the electronic invoice when that arrives.
In the busy world of hospitality and cater- ing, ordering in this way has the added advan- tage of allowing operators to send their orders at a time convenient to them – perhaps before
Technology Prospectus 2016 | 35
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E-PROCUREMENT ADDS VALUE
E-PROCUREMENT ADDS VALUE
FIVE WAYS IN WHICH
FIVE WAYS IN WHICH
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