Purchasing by F&B operators
Current & future profiles
Michael Altan PhD
Sheffield Hallam University
Purchasing by F&B operator: EU & Asia
Data collection qual.
F&B Literature
macro-economic factors
the foodservice market(s)
the purchasing function
(degrees of maturity)
Output:
Large vs. small ops.
In-depth interviews in FR,
UK, SP, SW & others
Data collection
quants
Analysis by unit, type of
unit, country & cross
analysis
Questionnaires
across countries to
assess relevance of
scenarios & profiles
developed
+ preliminary interviews
expert panel
Development of scenarios
Compass Group, Starwood
UK, SHU + independent
operators
VALIDATION
Focus group sessions in FR
& UK
Profiles for F&B
buyers. Usefulness:
A. Industry
(professionalization of
the function)
B. Education
C. Academic
publications
Professionalism &
productivity
Chains & related
D&D London
RED Group
Spaghetti House
Novotel
Piccolino
Le Bistrot Pierre
Chains
& related
Small
F&B
Ops.
Madsen London
Mimosa London
Café Luc London
Mosimann’s London
…………
Data collection qual.
F&B Literature
macro-economic factors
the foodservice market(s)
the purchasing
function (degrees of
maturity)
Large vs. small ops.
In-depth interviews in FR,
UK & other countries
Analysis by unit, type of
unit, country & cross
analysis
Development of scenarios
+ preliminary interviews
VALIDATION
Focus group sessions in FR
& UK
Output:
Data collection
quants
Profiles for F&B
buyers. Usefulness:
Questionnaires
across countries to
assess relevance
of scenarios &
profiles developed
A. Industry
(professionalization
of the function)
B. Education
C. Academic
publications
Aim:
To develop a comprehensive tool to assess the level of maturity of purchasing
in small UK F&B operators
UK F&B operations: contextual factors
Food needs of consumers getting really complex! (health, environmental impact, nutraceuticals,
obesity…NPD)
Increase in price of commodity products
When choosing a restaurant: reputation, variety & price BUT…
need to focus on low prices, quality & wide variety
Infrastructure of the supply chain
F&B operations must become supply management
(Kraljic, 1983)
Assessing maturity using 7 dimensions
A.
Maturity in purchasing
a1 Planning
a2 Organisational structure
a3 Process organisation
a4 HR
B.
Controlling
C.
Relationships with suppliers
D.
Sustainability
Dimensions
Focus on…small F&B operators, based on…
A Maturity in purchasing
A1 Planning of procurement
activities
Market analysis, product specs., use of IT/data mgt., ECR, EDI,
EPOS
A2 Organisational structure
Who does what when it comes down to purchases? Mandates, ect.
A3 Process organisation
Supplier selection & development practices? Sourcing strategy? NPD
A4 HR & leadership
Job descriptions, approach to recruitment, appraisal & development
B Controlling
Use of supply measures/cost metrics. Predictive measures for
purchasing
C Relationships with suppliers RM & commodity purchases? Preferred suppliers as an++?
D Sustainability - CSR
Innovation in F&B and SC efficiency (footprint) & water use + KPI
4. HR & leading
HR1 Job description & competencies
Functions
Technical competencies
HR2 Pers. selection & integration
Selection & integration training plans
HR3 Performance appraisal and career development
Career development & feedback
Target agreements
A.
Maturity in purchasing
Stage 1 (0 to 25%)
a1 Planning
A particular best-practice activity/tool/method is known
a2 Organisational structure within the organisation.
a3 Process organisation
a4 HR
Stage 2 (26 to 50%)
B.
Controlling
C.
Relationships with suppliers
D.
Sustainability
A position or person is assigned to perform the task.
Stage 3 (51 to 75%)
The process for completing the task is defined and
documented as well as applied.
Stage 4 (76 to 100%)
Cross-functional integration in the company is assured while
basic requirements are met.
Question
Stage 1
(0 to 25%)
Stage 2
(26 to 50%)
Stage 3
(51 to 75%)
Stage 4
(76 to 100%)
HR1 Job descriptions and skills
Function
Are key functions
described in a
generic way?
Individual
purchasing
functions are
described in
general
…
…
…
Technical
skills
Are there
technical skills
available in
purchasing?
Partial
existence of
technical
skills. Further
development
is planned
Technical
skills in
purchasing
are existing
for all
substantial
commodity
areas
…
…Skills are
existing & will
be
continuously
developed +
external
knowledge
used…
Thank you…