Hospitality Procurement and Cost Optimisation

If you're worried about the rising cost of food and beverage commodities, we can definitely help. (Diagram 1)
All hospitality organisations are looking to refresh the way they procure, the way they transact and optimise procurement.
Today, efficient procurement is a science - which F&B Solutions is expert in. We can deliver reduced costs and improved competitive advantage for you; by:

  • Analysing current practices and processes
  • Developing cost-reduction strategies (in selected categories, in tendering and in vendor negotiations)

Our secret?
A sophisticated, web-based Supplier Evaluation System (SES) which uses in-depth questionnaires - drafted, issued, and answered online, with responses scored, weighted and analysed using charting tools. It's automated, it's flexible, it's powerful, and it provides:

  • Invitation to tender
  • Request for Proposal (RFP)
  • Request for Quote (RFQ)
  • Request for Information (RFI)

F&B's tender management system can reduce your admin overheads greatly. This comprehensive, online procurement solution delivers effective, objective (i.e. non-emotional) supplier evaluation, assessment, and reporting. 

Its automated scoring and exception-processing scoring contribute towards a more efficient, and less error-prone process and outcomes (Diagram 2) 

What are the benefits of using web based tender Software?

  • Central Storage - all data related to the project is stored and backed up centrally, and is accessible at any time with your own user name and password
  • Automatic Scoring - questions can be autoscored without the risk of the respondent breaking spreadsheet formatting
  • Calculations - weighting and total score calculation are automatic and robust
  • Analytics - score charts and analysis are automatically generated online
  • Audit - everything is tracked for a full audit trail

User-friendly Procurement Audit Process screenshots: Please note - these are example only, and actual, highly customised content will vary from client to client. 

How does the system work? - A simple 4-step process (Diagram 3)

Phase 1 - Purchasing Review of your current practices)

  • F&B assesses your current supply chain (adding value with our superior understanding of your hospitality business and the constraints you face)
  • F&B assesses your current spend, develops a comprehensive volume spend map
  • F&B identifies opportunity areas (organisational purchasing synergies, for instance)

Phase 2 - Strategic Sourcing - getting more from old suppliers, finding newer, better suppliers

  • F&B makes recommendations on consolidation of purchasing power
  • F&B reviews your supplier relationships and benefits
  • F&B determine your richest tender prospects

Phase 3 - Tender Process (making evaluation and comparison easier and more efficient)

  • F&B defines evaluation criteria - publishing tender RFI's / RFP's via web-based tender system
  • F&B invites suppliers to respond - online
  • F&B scores, analyses and compares respondents - objectively
  • F&B makes appropriate recommendations to you

Phase 4 - Procurement Management
F&B can provide ongoing procurement management services (on a retainer basis) to ensure your business maintains improved profitability over time. Regular meetings allow us to monitor and critique your procurement disciplines and "tweak" practices to optimise profitability.  

Recent Tendering Case Studies
InterContinental Hotel Group Australia - 6.3% return on total tender volume. We earned our client back 12 x our consultancy fee
Orient Express Hotels Group Australia - 7.2% return on total tender volume. We earned our client back 7 x our consultancy fee
Cuisine Corp - 8.1% return on total volume. We earned back our client 12 x our consultancy fee