Pursuing Purchasing Excellence Considering that 60 to 70 percent of product cost consists of goods purchased form suppliers, integrating your suppliers and distributors are essential in today`s competitive world. The purchasing focus toward suppliers and distributors has changed from one of arm`s length, three quotes and multiple sources to one of long-term, mutually beneficial relationships with fewer and better suppliers. Purchasing plays a key role in just-in-time operations. NPC`s Produce Cost management Systems is proven successful. How well, depends on how well we jointly, or you, do the job of selecting and managing grower/shippers and distributors. The essential elements of the NPC program are, • Daily FOB Updates • Long-term Relationships • Consolidation of Distributors • Ongoing Exchange of Information • World-Class Costing Objectives • Continuous Quality Control and Improvement • Meeting Service Requirements • Weekly Market Outlook • Monthly Reconciliation (Click Here for Sample) • Quarterly Savings Reports (Click Here for Sample)The very nature of the NPC Program requires and usually creates a closer more cooperative relationship between clients, distributors and the grower/shippers. Four P`s of PurchasingAccordingly, a new purchasing excellence model of the 1990`s has evolved and is embodied in the four P`s of purchasing, profit, productivity, pioneering and partnering.
PROFIT:
Most people would agree that their company is in business to make a profit. Because profit depends on cost control, the more successful purchasing becomes at controlling costs, the more profitable the company will become. NPC prides itself by being able to lower your fresh produce costs without jeopardizing quality, thus lowering your over all food costs! Also by helping to lower distributors landed costs, its then helps them stabilize and ensure profitability.
PRODUCTIVITY:
Successful productivity improvement at the corporate and unit level requires certain ingredients. You need an effective organization, proper work methods, a product analysis, and careful time standard development and implementation. NPC partners with companies that make improving productivity, service and quality their priority.
PIONEERING:
It is crucial that companies gain early leads in the marketplace. The United States is becoming a supermarket where it is necessary to shop the many cities for an ever growing selection of high quality, low cost goods and services. The global supermarket demands that purchasing place a premium on statistical facts, fast reaction, ever-changing team structures, and managing distributors and grower/shippers at great distances. NPC`s Online Order Entry system and PCMS gives you the edge and a tool which has endless possibilities! PCMS should be released in a web based format by September 2006. This software is absolutely the most advanced produce costing software available in the food service industry today for purchasing managers. NPC works to earn your business every day as well as the respect of you restaurants. NPC continues to set the produce industry standards!
PARTNERING:
The basic objective of a partnering relationship is to reduce costs, improve efficiency, and increase profitability for all organizations. Developing procurement guidelines and parameters, implementing statistical process control quality systems, and reducing costs are done jointly in a team-like environment. Long-term agreements foster all these activities.
NPC has not found a multi-unit chain where cost saving benefits could not be realized. NPC presents an opportunity for purchasing professionals to compare and evaluate their current produce procurement and operational practices. NPC`s philosophy is geared to ensure everyone can take advantage of our services similar to a Co-op. Smaller companies take advantage of the purchasing power of larger corporations. Larger corporations do the same with an extension of our abilities, rather than just stand alone.
Most corporate purchasing personnel should look at NPC`s program as an opportunity to reaffirm its vital role in forming an overall cost savings structured corporate produce purchasing strategy.
Let NPC show you how a produce program can benefit you with absolutely no cost to you, guaranteed!
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