RETAIL, FOOD & HOSPITALITY

Driving cost down and quality up

Due to the competitive and continuously evolving environments of this industry, organisations who seek long-term profitability and operational efficiency cannot maintain a static approach towards business processes. The Retail, Food and Hospitality sector is particularly prone to newcomers entering the marketplace with disruptive technology and an innovative outlook which can bring about rapid and unexpected changes. Their entrance into markets can lead to higher expectations for quality and service, while the pressure to keep prices low and correspond with competitors’ pricing remains.

The customer is central to all business operations, including procurement functions. Their customer-orientated nature means that organisations within this industry need to focus on cutting costs without sacrificing customer experience and building lasting value. In the simplest of terms, effective procurement equates to having the right amount of goods or services, at the right time for the best possible price and is consistent with customers’ expectations.

WHY IS PROCUREMENT IMPORTANT?

Poor procurement decisions can be costly and time-consuming. In addition to negatively impacting on the effectiveness of your budget, these decisions can affect your organisation’s reputation and ability to compete with others in the industry.

When creating and implementing an effective procurement strategy, good demand planning is essential to delivering excellent customer experience. However, it often presents a challenging aspect of procurement for businesses in Retail, Food and Hospitality. Seasonality and consumer trends can influence demand for certain goods and services. Poor demand planning can result in either running out of stock or spending too much money on products and services that are not needed.

HOW WE CAN HELP

Pinnacle Procurement works with various businesses in the Retail, Food and Hospitality industry to overcome procurement challenges, as well as help them to adopt a strategic approach to managing costs and supplier relations.

By engaging with Pinnacle Procurement, we can provide support and procurement expertise specific to the needs of your business and industry. In addition to identifying how your organisation uses goods and services, we can implement an adjustable strategy for more accurate and real-time stocking and renewals. We can also assist you in securing the best value for money from reputable vendors.