Categories: Industry News, Pagabo News
Michelle Parnham, Head of Sales at Pelican Procurement Services, a trusted provider on our Food Broker Services Framework, has shared her knowledge on how catering organisations can create cost and operational efficiencies amid continued pressure on resources, combined with the fluctuating commodity prices.
Rising inflation is having a real impact on food prices, which sees prices continually shifting. Procurement in food alone can become a full-time job to track, negotiate and assess alternative options. Pelican support organisations in not only consolidating suppliers but also product ranges. It’s important to emphasise that controlling costs doesn’t simply mean ordering less volume or taking a hit on quality. Instead, it’s about having a holistic view of procurement; having centralised access to data not only helps to make better-informed decisions but it also identifies cost savings.
Creating cost saving measures in the health and social care sector
As an example, Pelican recently worked with a care home provider with around 40 sites, and by centrally analysing purchasing processes, suppliers and product lines, they identified that they were previously buying nine different types of loaves of bread. They were purchased from different suppliers, at varying prices, with different delivery logistics, with some choosing frozen while others were purchasing ambient.
In the same exercise, Pelican also identified that six different brands of jelly were being purchased across all sites! By consolidating, the care operator was able to make immediate financial savings in these areas alone. When undertaking any product review, it is always important to never forget about the end customer. As such, Pelican organise blind taste sessions for their clients to make sure that they are happy with the quality of the item being procured. For example, Pelican recently sampled fresh versus frozen vegetables in a taste test, and the client switched to frozen, happy with the taste, texture and quality, and achieving an annual saving of over £20,000. Also, don’t forget non-food items such as toilet rolls or chemicals, which can become very habitual purchases. One tip is to consider concentrated products, where each product goes much further.
Creating efficiencies for your organisation
Invoice management is rarely the main reason Pelican are asked to help an organisation; however, it is often cited as one of the key benefits that generate significant efficiencies for all. Pelican have worked with countless organisations that have struggled to manage massive volumes of supplier invoices. So many organisations continue to operate manually, taking time and effort, to correlate invoice items against what has been delivered across multiple sites and at the correctly pre-negotiated price. Not only is this mundane, but it is also hugely time-consuming and labour-intensive.
At Pelican, they manage this entire process for clients, and instead of receiving multiple invoices, a single monthly statement is provided. Using their centralised Pelican Pi system, the items have all been verified against the agreed purchase lists, and the prices checked, removing a great deal of manual burden from organisations.
Access Pelican through Pagabo's Food Broker Services Framework
Pelican's expertise and services can all be accessed, quickly and compliantly, by using our specialist Food Broker Services Framework. Find out more and enquire to see what you could save: