Hotel Operating Supplies and Equipment (OS&E) refers to the day-to-day products that both staff and hotel guests use. It represents a large range of items that hotels require to operate, much of which is consumable, and therefore requires monthly or bimonthly reordering.

Products that Fall Into the OS&E Category

All hotels require the following OS&E:

• Disposables: gloves, trash liners, tissue, and toilet paper.
• Cleaning Supplies: brooms, mops, dustpans, wiping cloths, dusters, and chemicals.
• Maintenance & Repair Operations: light bulbs, batteries, paint, and equipment repair parts.
• Guestroom Amenities: soaps, shampoos, sheets, towels, hairdryers, irons, and hangers.
• Staff Supplies: Uniforms.

Full-Service Hotels—those with restaurants and bars—require additional OS&E such as pots, pans, spatulas, squeeze bottles, food containers, cutting boards, dinnerware, flatware, glassware, and shakers.

Needless to say, the extensive amount of various operating supplies and equipment required for the many different departments in a hotel can, if not controlled, play havoc with one’s budget.

The first step in hotel OS&E procurement entails an assessment and selection of products as well as their specifications and suggested par levels. Once established, pricing and delivery are considered, and a controlled budget is created.

Hotels often purchase these items through a distributor or directly from the vendor. Vendors of OS&E are competing with an ever-increasing number of suppliers, making the field extremely competitive. The fine line is finding reduced pricing that also aligns with timely delivery and products that meet your specifications. Freight and shipping also need to be considered when conducting price comparisons.

Although startups may offer reduced pricing in an attempt to get your business, stability plays a key role in a secure supply chain. Established suppliers have a long-term track record and have survived past economic downturns. It’s important to remember that inventory shortages, in any number of departments, can significantly affect and have an impact on the quality of customer care.

In our current environment, with COVID-19 still creating supply chain issues, it’s best to have two weeks’ worth of operational supplies and equipment on-hand. Of course, this leads us to yet another almost universal inventory and supply issue—the space to house the OS&E and the ability to organize it in such a way that makes it easily accessible for both restocking and inventory analysis.

Most large chains have whole procurement teams and order hotel OS&E in amounts that allow for consistent savings and supplies. These teams vet and work with dozens of suppliers, taking advantage of both contracts and rebates. Unfortunately, smaller companies do not always have the resources to create this type of in-depth procurement system.

How can small and mid-sized hotel brands compete with the larger brands? The answer to that question lies in the ability to find the vendors that offer the best service and product at the lowest price. Enter the world of GPOs.

Consider the power of one to the power of hundreds, if not thousands. In a GPO, the power lies in the number of hotels and restaurants that have joined the organization. By making high-volume purchases, GPOs are able to obtain pricing similar to large corporations.

The trick is finding the right GPO, the one that works with the suppliers that carry the products you need. If you choose well, the task of procurement will be reduced from sourcing dozens of suppliers to just one. In much the same way you conduct your search for the appropriate suppliers, consider the same important elements when choosing a GPO. What is their track record? Are they reliable? What can they offer in terms of pricing and delivery?

Source1 offers a “one-stop shop” experience so that you can access suppliers that’ll get you better pricing on items you already purchase for your operation. What began with a promise of substantial cost savings from our buying group model has evolved into a solid bond of trust with our network of suppliers such as: HD Supply, Georgia Pacific, Ed Don, Home Depot, Batteries Plus Bulbs, Welspun, Cintas, Aramark and Chef Works.

Source1 was established in 1997. In 2018, they joined forces with other Group Purchasing Organizations to form the Buyers Edge Platform, raising their purchasing power to $12 billion and becoming the leading GPO in hospitality. They have contractual relationships with more than 165,000 rebated line items and over 1,000 suppliers. Source1 Purchasing partners with some of the most recognizable and established suppliers and distributors including American Hotel Register Company, Grainger, Office Depot, and Sherwin-Williams, to name just a few.

And just as important as the cost and time savings, is the partnership that develops. Source1 Purchasing offers you direct access to account and procurement managers that are dedicated to increasing your profitability as well as purchasing analytics that result in real-time, data-driven business decisions leading to measurable results.

A good GPO becomes a partner in your business and is dedicated to decreasing your costs while increasing your value. Contact us today to learn more about our services.

Looking for ways to decrease hotel operational costs without decreasing the quality of service?

Hotel operators focus on occupancy rates, average daily rates, and revenue per available room, which are three metrics used to determine success. In today’s current environment, where these three benchmarks have been drastically reduced, hoteliers are looking to increase each guest’s spend while reducing costs.

Think of technology as its own employee. Someone who can work 24/7 without you having to pay overtime. You don’t need to hire more staff – you just need the right tools. With things like data processing, extensive manufacturer and distributor relationships, compliance analysis, line item matching, billing and allocation, technology can be a solution to assist with the complex work of running a business.

From reducing food and beverage costs and saving money on linens and chemicals, to contract management and data cleaning, there are many areas in a hotel operation where technology can be utilized to help you find substantial savings and decrease hotel operational costs.

Use Technology to Decrease Hotel Operational Costs

The use of technology has many benefits and can help you increase efficiency, save time, reduce labor costs, and identify areas of savings. When you have so much time and money invested into something you love, such as your business, it’s hard to hand off responsibilities or lean on solutions such as technology. You want to be hands on in every aspect that goes into running your operation. Unfortunately, there is only one of you – and you only have two hands.

Running areas of your hotel operation such as the kitchen and managing inventory are time consuming and require paying attention to details such as price trends, counting supplies and placing orders. Taking advantage of tools such as a food cost management software can be the second pair of eyes and arms you need to take some of the burden off you and your team. You can automate processes and free up employees to do other things needed to keep your operation running.

With the use of technology and automation, comes a whole lot of data. Data is generated from so many different places such as manufacturers, distributors and vendors that it can be messy and hard to organize. Your purchasing department alone generates a tremendous amount of data. Having access to technology such as spend management tools can help you track spend in real-time and provides customized reporting to help you make quicker more accurate business decisions.

You Don’t Have to Do It Alone – Join a GPO!

A tremendous opportunity to decrease hotel costs lies in working with a group purchasing organization (GPO). While the basic principle, leveraging the collective buying power of its members, holds true for all GPOs, the purchasing power varies. The purchasing power of Source1 Purchasing is $20 billion, making it one of the largest GPOs serving the hospitality sector.

This means when you become a member, your buying power has drastically increased, leading to better pricing and bigger rebates. Smaller hotel chains and independent operators can then compete with the big brands in terms of purchasing power. The whole becomes greater than the sum of its parts. Start saving today!

Remember the days when “customer service” was the keyword in the hospitality industry? Hotels, casinos, and restaurants spent days training staff on the many intricacies involved in ensuring their brand and business was noted for going the extra mile. Now, that same staff is learning the intricacies of hygiene. Making small changes such as replacing air dryers with paper hand towel solutions can make a big difference.

The Seattle Times reported the sad statistic that, at the end of 2020, U.S. hotels neared 1 billion in unsold rooms. That number accounts for approximately $46 billion in lost revenue. As COVID-19 restrictions and social distancing measures begin lifting, hotels and casinos are left to determine how they can attract the consumers that are slowly emerging from lockdown.

Increasing Sanitation Practices

A recent survey revealed that improvement in the sanitation practices at hotels would have a considerable impact on their customers’ comfort level. These practices included face coverings for employees, suspending daily housekeeping, using technology to reduce contact, adding transparent barriers, and signage for washing hands.

In an attempt to increase sanitation practices, some hotels have replaced paper towels with air dryers. Unfortunately, this misguided, though good-intention act, is not recommended by scientists nor appreciated by guests. Did you know that *33% of hospitality users surveyed in North America feel unsafe when entering a restroom with air dryers and *70% of hospitality respondents surveyed agree with the statement “I wish more facilities offered paper hand towels as an alternative to air dryers”.

Let’s look at what the latest reports tell us.

Studies Promote Paper Hand Towels

A study reported in Harvard Health Publishing found that hand dryers in public restrooms draw in bacteria from the air that then falls onto the hands of guests using the dryers.

When Petri dishes were set in bathrooms without the use of hand dryers, one colony of bacteria, at the most, grew on the dishes. When Petri dishes were exposed to air from a hand dryer, up to 254 colonies emerged.

The report concluded that the most hygienic way to wash your hands is using paper hand towels.

Scientific data also reports that jet air dryers can spread up to 10 times more germs in the environment. A study conducted by U.K.-based researchers revealed that paper hand towels were more effective than hand air dryers for removing viruses left behind after hands are washed.

Bacteriophages, a virus that kills bacteria, were applied to participants’ hands before being dried by paper towels or a jet air dryer. Not only did more remain on the hands that used air dryers, but the participant’s clothing also held five times more virus and surfaces carried ten times more. This means that not only can the virus be transferred by the person’s hands, but the jet air dry also increases contamination by blowing the virus around. The researchers’ conclusion, “Paper towels should be the preferred way to dry hands after washing and so reduce the risk of contamination and spread.”

One of the keys to the importance of using paper towels lies in the increased risk of transmitting bacteria when hands are not dried entirely before leaving a restroom. One study found that wet hands can spread up to 1000 times more bacteria than dry hands. Unfortunately, *62% of air dry users say they stop using the device before their hands are completely dry because it takes too long to complete.

Yet another study sprayed participants’ hands with a harmless strain of E.coli. After washing and then drying with either an air dryer or paper towels, researchers determined that dryers removed only 23% of the bacteria while paper towels wiped out *71%. They concluded that the friction caused by drying with paper towels dislodged bacteria from the skin’s surface.

Customers Request Paper Towels

Science has spoken, but what about your guests and their comfort level? According to an international study conducted by United Minds in cooperation with CINT, *70% of respondents wished more facilities offered paper hand towels as an alternative to air dryers, and 75% use these same paper towels to avoid touching other surfaces in the restroom. Surprisingly, *33% said they felt unsafe entering a restroom equipped with air dryers.

The most notable statistic was this: *41% of respondents said they were less likely to go to places that did not offer paper hand towels as a drying alternative. This means that over one-third of consumers may not return if a business does not offer paper towels for hand drying.

Some brands note the increased difficulty in maintaining clean facilities when using paper towels, or the ongoing need to keep them stocked. Checking and refilling put extra pressure and demands on busy staff.

The answer to this issue is the Tork PeakServe^® continuous hand towel dispenser. This high-capacity, touch-free hand towel solution is fast and easy to refill and top up, freeing up staff for other activities. Watch this video to see how simple it is to refill.

It’s clear that the pandemic has brought hygiene to the forefront of consumers’ minds. It’s also clear that switching from air dryers to paper towels should be a part of your hygiene procedures. This one simple act can help your guests feel safer and reduce the risk of germ spread.

Hand Towel Solutions

Thankfully, there’s an easy solution. Help your guests feel safer by using Tork PeakServe® Continuous hand towel systems. It’s a hygienic, fast-dispensing, touch-free system that uses 50% compressed bundles to offer the highest capacity on the market, ensuring that hand towels are always available to your guests.

Learn how you can save on safe paper hand towel solutions when you become a Source1 Purchasing member! Contact us today!

 

2020 April Survey conducted by United Minds in cooperation with CINT using web-panels. The survey covered the US, with a total of 1012 respondents

Looking to lower hotel food costs?

Group Purchasing Organizations (GPOs) started in the healthcare industry and quickly spread to education, electronics, manufacturing, agriculture, and hospitality. While their services have expanded since their birth in 1910, most operate under one important premise—the diffused purchasing power of a group of businesses, when combined and leveraged, produces a powerful collective buying power. As Aristotle said over 2,300 years ago, “The whole is greater than the sum of the parts.”

Hotels leverage this buying power to lower food costs, increase quality, and manage their inventory and supplies. Let’s take a look at just how a GPO can lower hotel food costs.

Imagine that you’re the operator or owner of a large-scale hotel with thousands of locations. Think Marriott International with over 7,000 properties in 131 countries. You can be assured that when you contact a supplier, you’re going to get the best possible price. The competitive advantage is palpable.

At Source1 Purchasing, we have 60,000 locations, more than 350 manufacturer contracts, 165,000 rebated line items, and $12 billion in purchasing power. Not bad. Now imagine that we’ve become a part of your team, finding the right suppliers for your needs and ensuring you’re receiving the best possible price. Move over Marriott.

At Source1 Purchasing, we specialize in hospitality and food service.

This means that we do more than simply lower food costs. We’ll also take a look at your menu, plating costs, and inventory controls to look for potential savings. In today’s environment, it’s important to search for every business-building and cost-saving strategy.

Even though room revenue is considered the heart of hotel profitability, food and beverage sales can impact direct sales as well as occupancy rate. If guests are staying in a specific area, and they have a choice of one hotel that offers stand-out food and cocktails at reasonable rates, or another that puts little attention into their food and beverage program, which one will they choose?

Success is measured by the ability to maximize revenues while containing costs in all departments.

It’s not uncommon for hotels to leave the responsibility of purchasing, costing, inventory control, and menu design in the hands of the chef or food and beverage manager. These responsibilities, along with scheduling, food preparation, and ensuring guest satisfaction can leave little in the way for supply assessment.

For this reason, many in the hotel industry simply go along with their favorite suppliers year after year. Chefs may talk with their distributors if there’s a menu change, ask about specials, or simply establish a regular delivery schedule that rarely deviates.

Working with a GPO changes all of that.

At Source1 Purchasing, we work with both broadline distributors and specialty suppliers. This ensures a reliable, cost-effective supply chain. We’ll find the highest quality and best costs for each product and ensure contracts are up-to-date. Now, the hotel is working with one supplier that provides all-inclusive inventory and cost management solutions. Group Purchasing, that’s personal!

Chefs and operators get to do what they do best—create memorable meals and guest experiences that keep clients coming back for more and telling their friends.

As with all businesses, no two are usually ever quite alike. The same is true for GPOs. At Source1 Purchasing, we pride ourselves on becoming members of our client’s team. We’re committed to helping our customers increase their bottom line while providing their guests with high quality products and exceptional service.

To this end, we take a deep dive into analytics. This data provides us with the information we need to ensure your buying from the right suppliers, have the right contracts in place, experience the benefits of a solid supply chain, and have instituted the proper inventory controls.

Our supply-chain experts and their individual attention to a savings analysis of each product ensure you’re getting the best price for top quality.

In addition to food and beverage supplies, we procure the everyday operating supplies and products. In fact, we work with some of the top manufactures in the hotel industry, including American Hotel Register Company, World Amenities, and Chef Works, to name a few.

Like a cog in a wheel, while seemingly insignificant, it is vital to the momentum. One broken cog, and the wheel simply stops. A hotel has many moving parts and each part plays into the success of the business. At Source1 Purchasing, we’re here to help you keep your wheel turning toward maximum profitability.

As the hotel industry slowly climbs out of the cavernous vacancies left by the pandemic, “breakeven” has become the operator’s current goal, a means of hanging on until some sense of normalcy returns. Like most other businesses, hospitality has been hard hit with occupancy rates ranging anywhere from 48% to 50% from mid-July through October. While these rates typically decline into the new year, the second week of December saw rates drop to 37.8%, a tough decline given the present climate. According to Hotstats, just to breakeven, a hotel requires an average occupancy rate just over 37%. With the current state of the industry, hoteliers are looking to maximize hotel convenience store sales from every guest. One of the revenue streams that may need some revision in order to compete is the hotel convenience store.

With restaurants opening their doors only to close again as COVID-19 cases surge, hotel guests are looking for convenient grab and go snacks that will sustain them throughout the day. Guests are already comfortable with the level of hygiene that the hotel demands, as well as expects, and they – and you – will benefit from having them spend more of their time on the property and less visiting local retail locations.

Keep in mind that the current guest looks for more than soda and chips. Today’s conscientious consumer is searching out healthy, unusual, sustainable, and locally sourced products, and they’re willing to pay for it.

Half of all Millennials surveyed, those born between 1981 and 1996, reported they would pay more for food that offered added benefits.

The Kerry Health and Nutrition Institute (KHNI) reported on the 10 key trends in food, nutrition, and health for 2020. The major drivers for the food and beverage industry was sustainability and naturally functional. Functional foods refer to products that supply additional health benefits. Naturally functional means that the added benefits are derived from nature and do not come from processed additives.

Superfoods or food as medicine fall into this latter group and include foods rich in immune-boosting, anti-inflammatory antioxidants, and other healthy compounds. Common products in this category include berries, nuts, seeds, herbs, dark chocolate, dried fruit, and various teas and natural beverages.

Consumers are also turning to plant-based, whole grain, high protein, energy-producing snacks. Instead of chips and crackers, these guests are looking for nuts, dried fruit, and other wholesome snacks.

Additional trends include locally grown and authenticity. How does food become authentic? Usually, a story goes along with the product. This may be as simple as one of the ingredients with a rich history or how the founders came up with the recipe.

So, just how does a hotelier supply their guests with the latest food trends in a sometimes-small convenience store? Fortunately, packaged whole foods continue to expand providing operators some interesting options.

In addition to providing your guests with well-thought-out grab and go products, it’s important to consider how these items will be displayed. Prominent arrangements sharing the story behind a product, the producer’s sustainable practices, or the healthy, all-natural ingredients it contains are sure to catch your guest’s eye.

Here is a great example from Conagra showing how operators can display their grab and go items in their convenience store.

 

 

 

 

 

 

 

 

 

 

 

 

Consider the following companies that have created unique healthy natural foods with great stories behind the product.

• Sahale Snacks—After a hike on the challenging trails of Mount Rainier, founders of Sahale Snacks, Josh Schroeter and Edmond Sanctis, realized the basic trail mix blend they’d taken with them replenished their energy, but did little to satisfy their taste buds.Sahale Snacks was the answer—a nutritious and tasty snack. Today, the brand consists of 17 varieties of grab and go snack mixes. Glazed mixes include a blend of tangerine, vanilla, cashew, and macadamia, while a tasty trail mix might consist of berries, macaroons, and almonds.
• Angie’s Boomchickapop – What started in Angie and Dan Bastian’s Mankato, Minnesota garage as a way to teach their kids about healthy snack options, turned into Angie’s Boomchickapop, a healthy snack company centered around ready-to-eat and microwave popcorn. Products are whole grain, non-GMO, and gluten-free, and come in unique flavors such as Pumpkin Spice Drizzled Kettle Corn with nutmeg, cinnamon, cloves, and ginger.
• IBC Root Beer – This tasty soda makes a perfect accompaniment to delicious grab and go snacks and is made with all-natural ingredients like real cane sugar.
• Motts Juices – Samuel R. Mott started growing and packaging apples in 1842. Today, the company purchases more apples from New York farms than any other business. Their unsweetened single-serving applesauce packages and 100% non-GMO, no sugar added juices appeal to the health-conscious consumer.

Soure1 Purchasing, the largest Group Purchasing Organization (GPO) for the hospitality industry, offers a “one-stop shop” for locally sourced products as well as 1,000-plus suppliers that provide more than 9,000 high-quality products. With more than $12 billion in purchasing power, Source1 Purchasing members obtain direct access to suppliers, contracts, products, and detailed analytics. We reduce costs and streamline the procurement process. Contact us to find out more about our suppliers and the many benefits associated with a no-fee membership.

Looking for casino solutions that can help your operation maintain quality at reduced costs? You’ve come to the right place.

What Is a GPO?

As the name implies, a Group Purchasing Organization (GPO) leverages the power of their many members to obtain products and services at reduced costs. The combined spend leads to increased buying power, and the diffused spend of many leads to the purchasing power of one.

Industries that have successfully utilized this type of service include healthcare, manufacturing, education, construction, and hospitality.

Of course, not all GPOs are created equal. Some work exclusively with large broadline distributors, leaving specialty products usually purchased from smaller suppliers still in the hands of the organization.

Then there are the GPOs that work with all types of suppliers, such as Source1 Purchasing, your one-stop-shop for purchasing solutions.

How Does a GPO Benefit a Casino?

In many ways, casinos are made for GPOs. They combine the hospitality and food service sectors and have unique purchases specific to their industry. A GPO that understands this unique business can help them increase their bottom line, provide a safe and flexible supply chain, increase the quality, and provide the detailed data analytics that makes for knowledgeable and accurate decisions and forecasts.

Let’s take a look at just a few of the many benefits.

Casino Solutions that Increase Value and Decrease Costs

Many casino operators think of GPOs as a proven method to cut food costs, but they are so much more than that. Quality GPOs also provide casinos with reduced costs and a consistent supply of other products and services. If you purchase it, a proficient and large-scale GPO can usually acquire it.

From sheets to towels, paper goods, kitchen supplies, and other products, a GPO utilizes their many suppliers, casino solutions, and their expertise to find the right solutions and contracts for their members.

Click HERE to watch our webinar with TribalValue focused on foodservice purchasing trends and solutions for Tribal Casino Operators!

Integrates Best-Practices in Procurement Strategies

GPOs can help their members optimize spend and create a solid and undisrupted supply chain by providing both broadline distributors and local suppliers across a diverse product listing. This type of access can lead to a solid and secure supply chain, an important consideration in today’s changing economic and global environment.

Utilizing a GPO’s procurement processes also relieves the pressure from the internal procurement specialists. In some organizations, their time is divided with portions devoted to researching procurement opportunities while others are putting out fires when supplies are delayed or damaged.

Instead of having to deal with multiple suppliers, a casino and their team simply deal directly with their GPO.

Many organizations and casinos have turned to Source1 Purchasing for this reason alone. Working with a trusted procurement partner has relieved untold stress, reduced costs, and increased value. Controlling inventory, sourcing vendors, and acquiring the highest quality products for the lowest costs are the benefits of working with a GPO. What we like to call, Group Purchasing, that’s personal!

Provides a Transparent and Safe Supply Chain

A quality GPO vets their suppliers. They ensure that each one operates under certain codes, regulations, and standards. This may include required certifications from Safe Quality Food (SQF), the Food Safety System Certification (FSSC 22000), or the British Retail Consortium (BRC).

Each of these food safety programs ensures that manufacturers are operating under solid HACCP plans, have specific qualifications for their suppliers, and have developed a quickly-implemented product recall plan.

While important to any business, a casino’s reputation as a trustworthy brand that exceeds customer service and expectations is even more vital. Your guests are, after all, spending quite a bit more in the entertainment aspect of your successful business model.

Controls Quality Standards

Controlling quality standards means more than ensuring suppliers are operating under safe food guidelines. It also means that the GPO has researched the many suppliers for the different products to ensure that their members are receiving best-in-class products at reduced pricing.

These savings come in the form of direct pricing as well as rebates.

Why Source1 Purchasing Is the Trusted GPO For Casino Solutions

As one of the leading GPOs in the hospitality and casino segment, Source1 Purchasing offers more than $12 billion in purchasing power. We work with more than 1,000 suppliers and lead the industry with over 165,000 rebated line items.

Even more important than these significant numbers are our procurement specialists that have worked with casinos to supply and institute best-practices. A detailed analytics and contract evaluation maximizes spend and can lead to significant savings.

Maintaining quality at reduced costs while ensuring an undisrupted and transparent supply chain is our goal. Call us to determine if Source1 Purchasing is the right solution for your organization.

Click HERE to view our webinar with TribalValue focused on foodservice purchasing trends and solutions for Tribal Casino Operators!

If you are in the hospitality industry and do not currently have a procurement services company, then continue reading to learn how your business can profit from working with one. Source1 Purchasing is your Top Rated Local® procurement solution whether you are in the hospitality industry, entertainment industry, or catering industry. Contact us today to start your free supply chain analysis.

The Purpose of a Procurement Service Company

Procurement serves the function of spending the profits of an organization in order to procure the goods or services that are needed to address the requirements of the business. At Source1 Purchasing, we work to provide your business with the best possible prices for the goods and services you need so that you are able to spend wisely and save as much as possible.

What Procurement Services Are Not

Contrary to what some might think, procurement service companies do not function like bulk warehouses that allow you to purchase what you need in large quantities at low prices. Rather, our purpose at Source1 Purchasing is to provide a strategic analysis of your company’s operational spending so that we can help save money for your bottom line through more efficient purchasing.

Why You Should Use a Procurement Service Company

When you work with Source1 Purchasing, we can provide a rapid analysis of your current supply chain to see what is functioning efficiently, as well as what changes need to be implemented to help keep spending low. We will negotiate with sellers to obtain the best prices for your business while still allowing you to utilize the best practices for your industry. Source1 Purchasing is proud to offer:

• Systems and processes that limit risk and promote transparency
• Programs that assist you in developing the specifications you need
• Pre-qualifying processes for suppliers
• Negotiating your contracts to ensure fairness and profitability

How Procurement Service Companies Help You

As part of our job, Source1 Purchasing can help you vet all third-party vendors so that you can rest assured that the goods and services they sell are of the best quality and value for your industry. Sometimes there are unreliable and unverified vendors that will try to gain your business before disappearing with your money and without supplying the promised goods or services. Source1 Purchasing can help by making sure that all of your suppliers are fully validated so that you can avoid these potential pitfalls.

Choose Procurement Services

One of the greatest services that a procurement service company can offer to your business is detailed knowledge of your particular industry as well as insights into saving your management time and money. Source1 Purchasing leverages actionable data, creates a program tailored to your needs, and offers the widest range of contracts available so that your business can get the best value for your needs.

Source1 Purchasing offers buying that you can believe in. If you work in the hospitality, lodging, or entertainment industries, then you need to contact us to see how we can help strengthen the supply networks you currently have, grow the ones you need, and provide the savings that your business deserves. Contact us today to get started!

Our team is always looking for ways to help our members increase savings and utilize all we have to offer at Source1 Purchasing. Here are 3 ways to maximize your membership:

1. Utilize your Program Development Manager

Each member has access to a Source1 Purchasing Program Development Manager (PDM) who serves as the point of contact to a one-stop-shop for supply chain-related solutions. Discuss your goals and needs for the month, quarter, or year, and collaborate with him/her to develop a strategy that works.

Discuss your goals and needs for the month, quarter, or year, and collaborate with him/her to develop a strategy that works.

A Descending Dollar Report is one of the tools your PDM uses to ensure you identify the items or suppliers with which you’re spending the most amount of money. For instance, the program development manager can help you select different toilet paper and sugar packet options. Although your choice of toilet paper outspends sugar packets 20 to one, the impact you see on the bottom line may not be as significant from a return on investment (ROI) perspective. In that case, it could be more beneficial to align on contracted items that offer leveraged pricing and/or rebates for this category.

Another way your PDM can help is by connecting you to suppliers and partners to leverage their expertise.
Suppliers possess invaluable product knowledge that can result in cost savings or in better-quality options. Recently for example, a supplier for trash bags/can liners shared with us that 40 percent of the trash liners purchased today are too heavy or big.

If you look at kitchen trash bags (with the most common sizes being 55 and 33 gallons), there are about 40 different SKUs being purchased of all different sizes just to fill these trash cans. Working with those experts can ensure appropriate choice of bag size and density to deal with the type of waste you’re putting in the can. Purchasing the right one can result in cost savings.

2. Leverage Your Data

Evaluate the second or third distributors that you’ve consistently been using. By sharing your purchasing data with us, we can utilize analytics that will identify where there are contracted opportunities. The data will show whether to buy that exact product from a different truck or to identify a new supplier to handle the same category and quality of the item you’re already buying. Thanks to the Source1 Purchasing program suppliers and distributors, the cost will be at a leveraged rate.

Additionally, for members interested in learning more about our program after regular business hours, visit the Source1 Purchasing online community. All of our supplier programs can be found there along with the categories they cover, overall program benefits, and ways to access those programs — either through your broadline distribution or a supplier you buy from directly.

By sharing your purchasing data with us, we can utilize analytics that will identify where there are
contracted opportunities.

3. Leverage Supplier Relationships

While product quality and price are important, safety is something that may not be at the forefront of members’ minds. There are a lot of programs that certify safety. One of the top ones is Safe Quality Food (SQF) and it has different levels. We work with suppliers by asking them what kind of food safety or product safety certifications they have to ensure the product reaching the end user every day is safe; and, what product recall procedures they have in place, should something happen.

One of Source1 Purchasing’s alliance partners, Fresh Concepts, is able to activate on produce recalls within 45 minutes of getting the first notification and communicating it to the distributors and end users. This quick product recall procedure response shows how Fresh Concepts takes consumer safety seriously.

Take maximum advantage of contracted programs to reduce your costs and add those cost savings straight to the bottom line to improve your margin. Evaluate your products so you have the right mix and quality of ingredients. By raising the quality, sales going through the pipeline increase as does your overall revenue.

At Source1 Purchasing, many of our members are management groups for which we provide custom analytics. We can customize dashboards and update them monthly for management companies that have their own direct deals in place or MDAs with their distributors that allow for incentives like drop size or house brand usage. If you’re an existing member, inquire with your Program Development Manager or, for prospective members, speak with a sales manager.

Take maximum advantage of contracted programs to reduce your costs and add those cost savings straight to the bottom line.

If you’d like to find out more about your Source1 Purchasing solution or maximize your participation, contact us at 888-411-9987.

How are you going to maximize your Source1 Purchasing membership in 2019? Please let us know by commenting, below.

Steve Larkin possesses 15 years of experience in hospitality including the restaurant and food services industries. His culinary background as a chef brings a unique perspective and approach to the business. Currently, he serves as the Director of Purchasing for Source1 Purchasing.

 

Do you have the desire to increase the bottom line? Or maybe you need to decrease expenses, but don’t know where to start? Here to tell us how to increase margins and revenue growth is Steve Larkin.

Steve possesses 15 years of experience in hospitality including the restaurant and food services industries. His culinary background as a chef brings a unique perspective and approach to the concept of business profitability. Currently, he serves as the Senior Director of Purchasing for Source1 Purchasing.

We talked to Steve about how to increase profit margins and revenue growth and he shared these three tips with us:

1) Reduce Costs

Decreasing costs on items you are already buying directly impacts the bottom line. However, when you increase revenue, there are items such as labor, product, and service costs to consider. Therefore, not all of the revenue influences the bottom line.

In the hotel industry, if you raise room rates $10 to $20, there are other charges, amenities, and disposables to account for in that rate increase. As a result, those costs would not be realized in the bottom line. For restaurants, while it may be tempting to offer a flat menu price reduction, you have to stay consistent to your brand. Customers may get the impression that the food quality has been sacrificed or isn’t worth the price you’re offering it for during regular hours and decide to come instead during a slower time when a discounted price is available.

Earlier in his career as a chef, Steve created seasonal and special menus rather than discounting the entire regular menu. By utilizing these special menus to pique customers’ interests they began to recognize each one had a story to tell. Then, they came back to try other menu items. The identity and branding of each of these menus was consistent without compromising the quality of the food offerings the brand provided.

A few months ago, Source1 Purchasing helped one of its customers increase margins through a cost reduction of thirty-thousand dollars per year by switching from what they were buying to offering a consistent product across all locations.

Steve and the team met with a management group in Ohio and chefs from the company who were conducting a product cutting exercise. They analyzed the top three costly items the group was purchasing, which were bacon, sausage, and French fries. Then, they included the supplier in the discussions about the product to obtain the client’s feedback for each of the different options that would be a fit. They selected three new options that would work for them and a significant cost savings resulted.

2) Utilize Built-in Incentives with Suppliers and Distributors

Take advantage of drop-size discounts, private label incentives, or quick-pay discounts. Inquire with someone in the accounting department about the feasibility of adjusting payment due dates. Instead of having invoices held in a ready-to-pay mode until the due date, during his days as a chef, Steve arranged to pay all invoices with a produce vendor weekly and was able to capture a 1.5 percent discount. These are some viable options to consider for increasing margins.

Rebates worked for Source1 Purchasing customer Wilderness at the Smokies Hotel & Waterpark Resort. Steve explained how the team also conducted vendor price comparisons and the resort could save money on items he was already purchasing from vendors he was already using. Between Q3 and Q4 of 2017, the resort increased overall savings by over 7 percent.

3) Raise the Quality of What You’re Providing to Justify a Price Increase

Stay true to your brand yet don’t be afraid of quality and value. When Steve worked as a chef at the family-friendly restaurant, Crayola Café, health and wellness was increasing in popularity. The team conducted a great deal of research to determine ways they could involve kids more into food selection at the restaurant.

He led the menu revision process which went from traditional American fare (chicken nuggets and French fries) to one that incorporated a healthier, build-your-own-salad component. Kids were engaged in the experience and had fun being a part of the decision-making process. Since a higher quality product was being offered, they were able to raise prices on the entire menu 5 to 10 percent. This is one way to increase revenue.

The Source1 Purchasing Solution

At Source1 Purchasing, we can help you in your quest to increase margins and grow revenue. With no charge for membership, we can supply everything from the parking lot to the roof top. Being a part of our group purchasing program means you’re eligible for pre-negotiated, national account pricing with suppliers.

You can realize discounts on nearly every category that hotels and restaurants already purchase from for food items, operating supplies, equipment, small wares, and services. There’s no long-term contract required and our supply partners collaborate with you to ensure your product mix is the best while maximizing returns.

Are you already a member? If so, make sure you’re optimizing your purchasing program with the tools available within the community Marketplace, mySource1Purchasing.com, such as the Contract Product Match Report. Steve pointed out the likelihood of items that are available at contract prices that you are currently buying at a higher cost.

There are items you were buying yesterday that you can make better purchasing decisions on today to increase your margins tomorrow. Another valuable resource is the Performance Report. It shows how much you’re spending on contracted items versus your total spend. The idea is to be able to grow that metric. In order to do that, Steve suggested capturing as many discounts, savings and rebate opportunities from the Source1 Purchasing program as possible.

If you are not a member of the Source1 Purchasing Program, let us work with our supplier partners to determine if you’re utilizing the top items and obtaining them at an ideal price. Signing up allows you to tap into our suppliers. Steve reminded us that it often requires a small change from you to venture out and order with someone new. With the possibility of a 7 to 12 percent savings, you have everything to gain including increases in margin and revenue growth.

Contact Us today and get a free purchasing analysis.

Are there any other ways you’ve increased margins and revenue to meet your goals?  How are you going to utilize the tips we’ve shared to help you in 2019? Please let us know by commenting, below.

 

Owners and operators are hampered by being “small fish” in a big purchasing pond, lacking the collective buying clout required to be able to negotiate the best prices. They’re discovering that “do-it-yourself” procurement is not as simple as they had hoped and are now realizing that they don’t have to do it alone.