Mitigating Inflation & Managing Supply Challenges For The Year Ahead

As if the last two years had not been tough enough for the hospitality sector, the continuing supply chain issues and staff shortages, coupled with rising inflation, are creating further challenges for the industry.  Although many businesses in the sector have come out of 'survival mode', the economic situation that exists today as a result of the pandemic means that companies need to be on the front foot when it comes to procurement and supply chain management. 

Our team of procurement experts advise on three areas to consider;

    The cost of imports and delayed lead-times are likely to impact supply, causing disruption well into 2022. Ensuring a robust and resilient supply chain will be key to success. Review your supplier relationships and ensure you are communicating proactively.  Where relationships are under strain, it is prudent to seek out alternative suppliers and be ready to call on them if necessary. 
    With inflation levels high and set to rise to worrying levels, managing relationships with incumbent suppliers is critical to help mitigate increasing costs, as well as testing and considering lower-cost solutions that will provide you with alternative options whilst maintaining your quality and brand standards.  These solutions might range from using new technology, adapting menus or consolidating suppliers.  Analysing the data and understanding what's available in the wider market will allow organisations to identify where opportunities lie.
    Developing strong supplier relationships is key, and the starting place for building such relationships is by engaging the supply market through a highly professional strategic sourcing approach.  Even better if such processes are managed by people with specialist knowledge of the products and services that are being sourced.  For those businesses with multiple brands, multi-brand collaboration can bring greater purchasing power, although it's key that the individual nuances of each brand are respected through the sourcing process. 

You will be surprised at how quickly we can create real value for your organisation through People Powered Procurement. Click here to contact us today.