The Franchise Owner's most trusted news source

Log In / Register | May 21, 2018

A Supply Chain Checkup to Boost Your Profits

Is your supply chain sabotaging your profits? A marketing services company CEO offers a seven-point checkup.

Here’s where the biggest profit opportunities exist in your supply chain:

1. Inbound freight. “Most distribution agreements disclose that distributors make money on transporting products from the manufacturers to their distribution centers,” said Steve Salzberg, president of CRM (Cost Reduction Management). “However, few operators realize just how much profit is lost to this one component of product cost.”

2. Verified pricing. Confirming that each invoice is priced correctly is an arduous task, so most operators rely on spot-checking invoices or waiting for a food cost spike to make them dig deeper. “My purchasing responsibilities for close to 400 restaurants require a lot of time and focus,” said Michael Rosen, senior director of purchasing and R&D at Villa Restaurant Group. “I am also responsible for monthly price verification of the 12 distribution centers that deliver to our units. I chose to outsource that function, and now I get the data I need to negotiate with manufacturers.” — Bill Carmody, Nation's Restaurant News

No votes yet

About Marilee Hayes

Area of Interest
Buying a Franchise