BUILDINGS, MAINTENANCE & REFURBISHMENT SMART PROCUREMENT STRATEGIES
of managing the HR function for a school or trust’s catering team could be a deciding factor, as could a concern that the current in-house food offer is not delivering the standard of quality required. Contractors provide a multi-faceted head office support function and investment in refurbished facilities may be offered by them to schools, as an incentive. However, the repayments will, most likely, favour the contractor. What seems an easy, low risk option may come at a significant cost.
To evidence this, analysis shows that a food procurement partner like allmanhall consistently shows cost savings of 20-35% when benchmarking against outsourced catering food costs. Contractors employ a variety of earning models. A common model is ‘Cost Plus’, based on an estimated budget – the cost of catering, plus a management fee. If this budget is exceeded the school pays more; if savings are made, these should be passed on to the school. The caterer charges the management fee, typically circa 5% of the total cost of catering: food + labour + sundries, plus VAT.
Whilst increased competition pressure has seen a steady reduction in these substantial management fees, the majority of the contractor’s earnings are derived from food purchasing paid for by the school or trust. High levels of opaque rebates are incorporated by the contractor into the food prices on the invoices from their suppliers. As a result, benchmarking of various contractors’ food prices consistently identifies them as being an expensive option – see the 20-35% stat mentioned earlier.
Any expectations of saving money through outsourcing may well prove to be disappointing. Take this case study, for example: After working with an outsourced catering provider for less than a year, a previous client of allmanhall re-engaged in 2024 after a benchmark demonstrated that going back in-house made savings of 21% achievable. With double-digit savings and a speedy, fully supported and efficient mobilisation, the school is now delighted to be working with allmanhall once again and enjoying a rewarding in-house partnership, where the food procurement specialists are an extension of the catering team.
There are ways to surround an in-house team, more cost-effectively, with support services. For example, an expert food procurement solution will deliver both cost savings and insight by providing a catering controls platform to track and manage every penny of spend, stock audits and wastage.
Buyers in a food procurement operation will manage suppliers and mitigate risk whilst negotiating food prices. We add to this peace of mind through a dietetics and nutrition function, too, to deliver regulatory compliance updates, as well as everything from menu design and food innovation to support for allergen management and in-house staff training.
We worked closely with Worth School since their Bursar engaged us in 2014. Their initial benchmark demonstrated that, by partnering with the food procurement expert to manage food and catering related purchasing, a saving of 13.93% was realisable and other objectives such as administrative efficiencies and access to support would also be made possible. Worth School was also able to retain selected valued suppliers, whilst ensuring they remained competitive and were integrated into allmanhall’s supplier management framework and catering software platform.
Worth School has undertaken two evaluations since first engaging allmanhall. Both reviews resulted in contract extensions and the strengthening of their existing partnership, with allmanhall continuing to prove their expertise and support via impressive results and to deliver for Worth School. Quantifiable results included a further 11.53% improvement through supplier tendering and price mitigation alongside continuous proactive supplier management to drive consistent and ongoing benefit for the school. Our catering software platform provided administrative efficiencies and a reduction in volume of invoices, from 2000 per year to less than 120 per year. Furthermore, their software platform enabled the inputting of 198 recipes, facilitating more accurate costing, stocktaking, wastage tracking and allergen management. Emma Hickmott, Domestic Bursar, Worth School, commented: “I have worked with allmanhall since appointing them in 2014, and I have certainly seen the financial savings, and their ongoing effective mitigation of supplier price increases. I also greatly value the administrative time savings. Nothing is too much trouble for allmanhall’s support team to assist us with, and I really see them as an extension of our catering operations. The support and reassurance that this partnership brings has allowed me to focus on enhancing our pupils’ dining experiences and environment to a new level of excellence”. This year, we have started working with a number of additional schools and trusts who’ve made the move to in-house catering to ensure every penny of their food and catering budget is working as hard as possible, sustainably and responsibly.
Nigel Donnelly, Northern Star Academies Trust, said: “allmanhall’s support has been so much more than simply supply chain management and price negotiation, as valuable as that is. They offer a consultative approach and full support, understanding and enabling our objectives and really taking onboard our specific needs and challenges. The team truly understands catering in education.”
Savings, best value and increased control were the initial motivators, but Northern Star Academies Trust now enjoys fewer monthly invoices, expert nutrition and dietetic advice, and regular sustainability reports to ensure that, quite literally, their school food doesn’t cost the earth. Great food service does not always require a costly silver fork. A competent team and a dedicated support partner will ensure the in- house solution is a success, enabling a school to achieve significant , and perhaps necessary, cost savings and price increase mitigation.
March 2025 September 2024
www.education-today.co.uk www.education-today.co.uk 39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
