Many catering operators lean heavily on the expertise of procurement service providers to not only deliver the food they need, where and when they need it, but to support them in so many other ways.
Procurement companies source the food and drink to meet a range of demands from place of origin, sustainability and animal welfare accreditation, quality and nutritional requirements, through to allergen management, special diet menus, and price.
They can handle price and availability fluctuations, meet plastic reduction requirements, and arrange deliveries to minimise food miles and greenhouse gas emissions.
In other words, when the arrangement works well, they leave caterers as free as possible to get on with the business of designing menus and the cooking and serving of tasty, nutritious meals for their customers.
In this article we’ll take a look at the services provided by the main foodservice procurement companies, and offer some ideas about how catering buyers can best make their relationship with them work.
What is a framework?
Procurement service providers operate purchasing frameworks, each of which is an umbrella agreement that sets out the terms (particularly relating to price and quality) under which individual purchases can be made throughout the period of the agreement.
Framework agreements are designed to help buyers procure goods and services from a list of pre-approved suppliers. Each framework supplier has been through a robust procurement process to get a place on the framework.
What are the main benefits of using purchasing frameworks?
1. You can be assured of the supplier’s quality and capabilities as the panel of suppliers has already been vetted and approved
2. Prices are as keen as possible because every supplier has been through a competitive process
3. Suppliers are engaged in constant and repeated competition for business throughout the life of the framework
4. The buying process for each framework is made as straightforward as possible
5. Better prices and service because using a framework consolidates the purchasing power of lots of individual institutions
6. You can rely on a procurement company’s advice, expertise and collective muscle if you experience a problem with a supplier
Glenn Campbell, founder and managing director of Cohesion Consulting, suggests catering buyers should look to answer four key questions of any procurement company.
How do you know the sort of company you’re dealing with?
What is their account management structure like? Is there a nominated account manager or is it based on helplines? How innovative is the supplier? Do they offer new products, and are they fully aligned with the sector the contractor operates in?
How does the supplier react to supply chain problems? With debates running on 14 allergens possibly becoming 21 in the future, electronic allergen systems will become even more important. Finally, is pricing dynamic and how responsive is it to market trends?
What information should you share to get the best service?
The service required – delivery frequency and load, client customer demographics and price points etc. ESG requirements – reducing food miles, food packaging and food waste. The challenge – how can the supplier help you drive uptake and margins? Future trends - menu development presents a clear trajectory for change and the supply strategy needs to be clearly defined.
How to leverage market insight and support?
This is critical, suppliers need to be the proactive eyes and ears in the food supply market, with an awareness of food trends, market shifts, and cost forecasts. The post-Brexit markets are harder to navigate, so supporting British producers not only improves food security, it helps support the circular economy.
How best to build a positive relationship?
Positive relationships are built in good times and strengthened in bad times. Set clear lines of communication and shared service level expectations, supported by planned escalation routes for problems rather than dry SLAs (service level agreements), is key.
What the procurement companies say
Avendra International
Avendra International is the new name of Pelican Procurement Services, combining the expertise of Avendra, Pelican, Trinity Purchasing, and First Choice Purchasing.
Avendra Group itself is a sub-group of Aramark corporation, a public entity traded on the NYSE. As Pelican it has worked in schools, colleges, universities, NHS Trusts and care homes for more than 30 years and has a total annual client spend of £135m. Read more.
Entegra/ CCS
Procurement specialist Entegra, a Sodexo company, has been chosen by Crown Commercial Service (CCS), to implement the Government’s new Buying Better Food and Drink public sector agreement.
This aims to drive up standards of food and drink in the public sector by meeting the Government Buying Standards for Food and Catering (GBSF). It also aims to support food producers in accessing public sector food contracts, offer a simple route to market, and provide more local produce. Read more.
Foodbuy
Foodbuy is a leading food procurement organisation based in the UK, with more than £2bn of managed spend. Part of Compass Group UK & Ireland, which is the parent company and largest client, it operates a team of over 200 procurement professionals serving schools, colleges, universities, NHS sites, care homes, prisons and the MoD. Read more.
TUCO
TUCO is the leading professional membership body for in-house caterers operating in the higher, further education and public sector. It provides a platform for members to buy via TUCO’s compliant catering frameworks and wide range of suppliers, maximising value through combined £160m-plus annual spend. It also offers the latest market research, trends and analysis. Read more.
YPO
YPO is one of the largest public sector buying groups in the UK. It was established in 1974 by a group of local authorities whose aim was to achieve efficiency savings through bulk buying power.
Fifty-one years later, its focus remains on delivering the best possible value to the entire public sector, including caterers from the education sector to the emergency services. All profits are reinvested back into the public sector, so the money goes to frontline services ‘where it’s needed most’. Read more.