Chain Leader

Each of these areas will yield you savings which will add up to food and supply cost reduction. Unfortunately, some of these tasks are time-intensive but will give you an excellent ROI even if you decide to hire an outside consultant to assist you.

Audit your invoices against your contract: Monitor contract compliance so you are receiving your negotiated manufacturer prices.

Define accurate category assignments: Document the proper assignment of distribution markups with your distributor on all items purchased. One party's definition of "poultry" and its category markup may differ from your perception of "grocery" for a breaded chicken tender, for instance. The difference in markup percentage can add up to potential overcharges quickly; these are monies which drop right to the bottom line. 

Visit your vendor: Where feasible, go to a manufacturer's facilities to evaluate new items which will meet your quality needs but offset food cost. You will find that manufacturers will bend over backwards for customers who take an active interest in their services.

Manage product inventory levels: Verify your distributor’s inventory levels of your products. Find out their optimal levels and maximize full truckload or rail freight wherever possible. Fuel prices have now become a significant inflationary factor in product cost.