Suppliers

Having the right suppliers can make running your business easier and more profitable; poor suppliers can cause disruption and add cost to your business. Choosing the right suppliers is an important task which should be carefully considered. Here are some pointers to help you find the right suppliers.

Be Clear About Your Needs

Good suppliers offer products or services which match (or exceed) your business needs. Being clear about your business needs is the first step in assessing different suppliers. For example, is next-day delivery more important to you than price? Is quality more important than next-day delivery?

Finding Potential Suppliers

Potential suppliers can be found through the following:

• trade press;
• directories;
• internet searches;
• trade associations;
• recommendations;
• exhibitions and trade shows.

Criteria For Choice

Availability

• Do they provide the types of goods you require?

Service

• How good are their service standards?
• Do they deliver goods when you need them?
• Do they go the extra mile?

Reliability

• How reliable are they? (If they let you down, you let your customers down.)

Quality

• Are their products good quality?
• Is their quality consistent?

Value For Money

• Are you looking for the lowest price or are you willing to pay a little more for good service, reliability and quality?

Communication

• Do they keep in regular contact with you and show interest in your business?

Financial Security

• Are they financially secure?

Food Safety

• Is food delivered in a hygienic way and in line with HAACP requirements?

Trading Terms

• Do they offer credit facilities?

Value Added Services

• Do they offer advice on putting together a menu/pricing dishes etc?
• Do they provide printed menus for you?
• Will they keep you up to date with catering trends and market research?

How Many Suppliers?

The simple answer is don’t buy from too many suppliers and don’t just have a single supplier. Using a small number of suppliers has the advantage of making supplier management easier – fewer phone calls, less paperwork and simpler payment arrangements. Regularly using a small number of suppliers also helps build relationships and ensures that you remain important in the eyes of your suppliers. (The more money you spend with a supplier, the more important you are regarded.)

Using a single supplier makes your business too reliant on them – if they have problems, you may not be able to find alternative supplies at short notice, which can significantly affect your business.

Be Clear About Your Expectations

Before you start trading with a supplier, ensure that they are clear about what you expect from them. The larger food suppliers will have their own documentation stating the trading arrangement with you; take time to read and understand this, and make sure that you are happy with the arrangements before agreeing to go ahead. For smaller suppliers who may not have written trading terms, confirm your requirements to them in writing so that there is no room for misunderstanding.

Monitor And Review

Monitor your suppliers on an ongoing basis to check that they are providing the levels of quality, service, standards and value for money in line with the needs of your business. If not, make them aware of the issue as soon as possible to give them the opportunity to make changes. Beware of suppliers who have become complacent about doing business with you. If you continue to be unhappy, then find alternative suppliers who will take more of a ‘partnership approach’ – working with you for mutual benefit. Remember, the more successful your food operation becomes, the more you will be ordering from your suppliers. It’s in their interest to help you develop your food operation and make it a success.

Buying Equipment

Buying As Part Of The Pub Inventory

If the pub you take on already has some catering facilities you are likely to be buying catering equipment as part of the inventory. Unfortunately, these items are sometimes in poor condition and may not work properly. It is wise to check these items thoroughly before taking on the pub (and again on ingoing day) to check whether they are fully operational. Items that are not functioning properly or are in poor condition may not be valued as part of the inventory but you will need to budget for, and organise, the replacement of items that you need for your catering operation. It is better to know of such issues in advance, rather than at the last minute, or when cash has been spent on other things.