Earlier this year, we introduced our clients to our new Purchase Reports widget which allows users to see a customized summary of their purchases at-a-glance whenever they log in to their web portal. Recently, we’ve updated this widget to also include the percent of purchases made that are on-contract across all client locations. For multi-unit restaurants, casinos, and other multi-faceted operators, this insight allows them to not only manage their spend, but ensure their units are making price-conscious decisions by purchasing on existing contracts. This data can also be helpful in negotiating new contracts overall. For example, if a pizza operator sees that they have cheese and flour on contract but are spending a high percentage on chicken tenders that are not on contract, it may make sense to also look at negotiating a new contract with their distributors. This level of granular detail is also helpful in identifying if there are issues with contract fulfillment overtime at any of your locations.
With Contract Coverage on Purchase Reports you can:
- See what percentage of items are covered within a specific category
- See what specific items are covered.
- You will see 100% for contracted items, 0% for non-contracted items and if an item is added mid quarter/month you will see a percentage reflecting the time that the item was added.
- When selecting a specific item you will see the percentage as a hyperlink.
- When clicking this hyperlink it will give you the ability to see at what distribution center the product is being purchased and the last price paid for the product.
- NOTE: the Contract Coverage feature is based on the date range that the Purchase Report is run.
This new feature can help procurement professionals identify what high volume items are being purchased that aren’t on contract. It also gives them the insight to address issues if they see a distribution center not charging the correct price while an item is on contract.
Are you a procurement professional in foodservice looking to get more insight into your data? Let’s connect.