What Can a Purchasing Audit Do for You?
A purchasing audit provides managers insight into the processes used to order products, highlights what products are purchased, displays the selection criteria used for each product and vendor, and outlines the procedures followed at each step. In the fast-moving hospitality industry where most produce consumed is externally sourced, such audits allow for a review of vendors, products, costs, quality and wastage. These audits can reveal potential areas for savings as well as an understanding of the bigger picture, enabling managers to make informed strategic decisions.
A purchasing audit is a useful practice as it highlights the gaps and areas to focus on for controlling risks, preventing fraud, identifying potential areas for cost cutting and ensuring that regulatory requirements are followed. It can lead to greater efficiencies, process improvement, savings in dollars and an increase in the return on investment in the long term.
How Source1 Purchasing Can Help
Source1 Purchasing has over three decades of experience in helping hospitality clients implement best practices throughout their procurement life cycle. Our clients have access to a dedicated team of procurement experts that provide unparalleled service and support to ensure that the purchasing department has regular audits in place. We help managers establish benchmarks, set goals, and measure results at each step of the procurement process.
Due to our current dynamic economic times, businesses undergo frequent changes, whether it be in management/staffing, vendors and product availability, or new technology. Purchasing audits can be a way to ensure alignment with the evolving strategic vision of any hospitality business due to external or internal organizational changes impacting its procurement department. At Source1 purchasing we believe that as partners with our clients we can help in cost reduction, bench-marking and improving the overall operating efficiency of your business. By conducting regular audits managers and departments benefit in the long term in more ways than one.