Procuring quality goods and services at the best price is no easy task—yet some have become so established and developed at this process that they are considered experts in their field—procurement professionals.
In addition to the basic reports that these experts turn to on a daily basis, such as sales, inventory and food costs, there are targeted reports geared to increase their knowledge base and give them the data they require to make exceptional cost-saving decisions. Successful managers of large casinos, universities and multi-unit restaurants turn to these five reports to help manage their procurement process.
Price Range Reports
As the name implies, this report reveals the different prices your multiple units are paying for the same item. With a quick glance, you will be able to determine what items and areas require more in-depth price comparisons, what vendors may be over-pricing their goods, and where contracts need to be implemented. This information gives those in the gaming, hospitality, and education foodservice industries the information that leads to managed vendor contracts and cost savings.
Commodity Market Pricing Report
Tracking food commodities is one of the key elements in creating profits as well as a menu that can be sustained. It only takes one extreme weather occurrence or a widespread disease to diminish supply and send costs soaring.
A commodity price index is a weighted average of commodity prices. This includes products such as eggs, dairy, seafood, meats, and produce. Tracking these trends helps operators to anticipate future costs.
An example of this is the current outlook for livestock and several factors around the globe that will impact consumers and purchasers in the U.S. The Market Outlook summary for July 2019 reveals a decline in beef imports due to weather-related herd reduction in Oceania. Pork imports will also be affected due to the continuing effects produced by the African Swine Fever in China and increasing global demand amidst a thinning supply. Lamb imports, however, are expected to remain steady in 2020. Good information to know when setting up your procurement process and menu for the coming year.
The USDA releases these market reports on a weekly basis which helps with future planning as well as current price comparisons.
Analyzing purchasing data is at the root of soliciting competitive quotes and managing and awarding contracts. Purchasing data allows operators to view data from multiple-units simultaneously and offers the ability to analyze contracts from a “bird’s eye view.” A good purchase report allows buyers to configure data based on vendors, locations, or categories. It also offers the ability to view pricing over time with a specific manufacturer.
In the end, this detailed report will help procurement professionals determine which items could be better purchased in contract form or possibly switched out for better pricing or quality with a different vendor.
Contract Renewal Reports
This leads us to the Contract Renewal Report—a report that comes up whenever a contract is expiring. By reviewing this information, operators can determine what changes need to be established, if renegotiation is in order, or if its time to solicit quotes from additional vendors.
At Buyer’s Edge Purchasing, our Contract Renewal Report includes a detailed list of purchases that are not contracted as well as purchases that are covered by a contract. This gives operators the opportunity to have a visual on what products they might want to consider obtaining bids on and ensures they are receiving everything that the contract stipulates.
Price Trend Report
This report allows procurement professionals to see what items have impacted their spending. Trend analysis helps purchasers determine both strengths in their procurement processes as well as gaps that need to be addressed.
In Toast’s 2019 Restaurant Success Report, out of 1,000-plus restaurateurs that were surveyed, over 50 percent said high operating and food costs were their top challenge. Keeping an eye on your data through trends, graphics and reports gives casinos, restaurants, and universities the best opportunity at developing a successful procurement process.
Targeting your costs is crucial in creating a profitable establishment. Find the reports that work for your place of business that show what’s selling, what isn’t, and at what price point profit begins.