6 Ways we help Perishable Procurement

Procurement professionals in the restaurant & grocery industry must have a robust supplier network and be able to pivot on a dime. Procurement executives succeed only by lowering costs and ensuring their organization’s strong performance. Today’s advantages are not standardized as it was 10 years ago. Technology is advancing and offering abilities affordably that have not been used before.  

 

We believe you have six factors that should be monitored:

OLD PROCUREMENT TECHNIQUES
RESTAURANT FOOD WASTE
2019 GROCERY STORE FOOD WASTE

1. Optimizing suppliers. There’s no doubt the restaurant & grocery business has become even more cut-throat. As a result, it will become even more important for existing restaurant, grocery stores to maximize the best possible deals. That means analyzing and pruning suppliers so the remaining vendors can offer optimized pricing. The takeaway is that purchasing the same product from the same suppliers, does not enable you to measure the market indexes at live time or pivot at needed time. You in essence have placed your procurement on a train track without the ability to pivot or make decisions.

2. Implementing Procurement Across Locations. Grocery stores & restaurants need to create efficient, sustainable and replicable procurement across the entire organization. NOT TRUE, in fact this is the issue today. While different locations will have different needs, based on their geographic area, customer demographics, processes, & procedures must analyze data for that place in time along with historical data to understand supply & demand. Procurement should be matched with local fresh product ascertained by suppliers & product who are qualified according to individual procurement requirements. 

3. Cutting Costs in Non-Traditional Ways. It’s hard for grocers & restaurants to save money on food because they feel they have tapped every possible avenue already. In order to cut costs, many factors need to be addressed. Energy & Waste are the two biggest factors that impact savings or expense. Localized supply in season reduces the cost of energy, efficient supply reduces both energy and waste. Streamlined procurement improves efficiencies while reducing labor cost, multiple offers from suppliers reduces cost, utilizing historical data integrated with current data offers the ability to pivot, reduce waste, and energy.  

4. Utilizing technology. Restaurants & grocery stores are not often thought of as being in the vanguard of technology, but consumer demand is forcing them to explore shopping through websites, apps, or even through outsourced personal shoppers. It’s no surprise that tech giant/grocery store Amazon is the first to track supply chain transparency and food safety through blockchain technology.

Technology is also helping with labor costs, often the biggest area of expense for grocery stores, which is why self-checkout has spread so rapidly. While this cuts costs, it also allows the remaining employees to use their skills in ways that promote sales, such as customer support, prepared food chefs, and online order fulfillment staff. 

Artificial intelligence working with blockchain and online procurement reduces waste, and energy, saving money while offering an ability to pivot.

5. Outsourcing. For the most part, grocery consumers are reluctant to shop online or via an app. They want to see and feel their food—but they also want convenience. What’s a grocery store to do? People are more willing to shop online if click-and-collect personnel fulfill their online orders, ensuring a human touch. However, this service is far too expensive for most grocery stores. Therefore, a new business model has sprung up as outside services partner with grocery stores to give customers what they want. For example, services like Instacart allow customers to text with a human being who will fulfill the order they placed online. Forget something or are particular about the ripeness of your tomatoes? Just text your fulfiller and get what you’d pick out yourself. 

6. Business intelligence tools. Savvy restaurant & grocery store managers use business intelligence tools to analyze and predict sales and make their ordering smarter. In this way, they know where they’re spending money and what areas need to be optimized. Unfortunately, we’ve found that most procurement executives, who are squeezed for resources, don’t have the bandwidth to do the constant optimization that’s required to really replicate this sort of effort, but a partner service with robust analytics can help. 

How we can streamline your Old Process

Facing historically tight margins due to the extensive resources it takes to keep product quality high, procurement teams in these sectors need to be on top of their game in order to compete and remain financially viable. A few specific procurement challenges companies in grocery and restaurants face today include:

  1. Getting the most value out of every part of the procurement process and ensuring alignment between sourcing results and overall business goals
  2. Navigating mega market trends: consumer demand for product transparency, empowered and well-researched consumers, health and safety issues and supply price hikes. These market forces are putting customer loyalty and brand reputation at stake and pushing grocers and restaurants to rethink the way they source or bring products to market.
  3. Creating an enterprise-wide sourcing program in order to create a more efficient and unified spending process
  4. Small, resource-constrained sourcing and procurement departments, especially in fresh products.

Business today isn’t easy, but in the face of all these pressures, a few grocers and restaurants are thriving. 

What’s The Secret?

Incorporating a sophisticated, strategic approach to sourcing as part of their overall procurement strategy.

  • Outsource your procurement
  • Hold procurement accountable
  • Utilize AI to forecast supply & demand
  • Reduce operating expense
  • Save energy & reduce waste

 

Gro-connect.com developed solutions to revamp the old processes smoothly, increasing your operations efficiency immediately. 

We can smoothly transform your procurement team and your processes, to a new evolving processes removing waste & energy use. Our technology improves procurement immediately and we offer a low acquisition cost. 

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