By TopUp Mama

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Procurement departments exist because businesses always need products and services to serve their customers. Procurement managers in the hospitality industry are responsible for purchasing different consumer products at their establishments, including food products, cleaning supplies, packaging supplies, and general equipment. These professionals need to have their supply chain systems in place to avoid the long back and forth involved in finding a supplier whenever you need supplies.

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Hospitality businesses can seek the services of a new supplier when;

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1. They’re just starting. 
2. The current supply chain has loopholes. 
3. Demand is much more than the current supplier can handle, among other things.

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What should procurement managers assess in new suppliers? 

1. The Suppliers’ Supply Chain

It is critical to understand the supplier’s supply chain. Elements of the supplier’s supply chain process that you should focus on include but are not limited to;

• Where does the supplier source items?
• Supplier’s Demand Forecasting and Management
• What are the patterns in product availability?
• Where does the supplier source raw materials for the final product? 

Ensure that the supplier’s whole supply chain process is guaranteed to meet your needs and can manage you effectively.

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2. The Supplier’s Delivery Systems 

In delivery businesses, customers have always preferred to receive their deliveries on time. Same for you, you wouldn’t want to receive items meant for a breakfast meal to come in later at 2 pm. Thus you should check the new supplier’s delivery systems.

• What means do they use to deliver?
• What time do they start their deliveries?
• How long does it take to deliver? 

Knowing this vital information will help you plan your purchase days more efficiently, and most of all, you will always be prepared for emergencies.

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3. Quality Audits and Key Performance Indicators (Product and service quality)

The supplier should have reliable data that will assist them in developing action plans that will improve performance and, thus, customer satisfaction throughout the process. As said before, the supplier should have a culture of continuous improvement. 

Significant aspects to look at include;

• Required certifications 
• Active quality management tools 
• Service charter
• Inspecting the quality of products

4. Human resources

How ready is the supplier for your business and many others? How big is the team, and how qualified are they to handle your business needs? Simple aspects like clear communication and attention to detail can cost you a lot if the supplier’s personnel isn’t qualified for the task. 

The supplier’s workforce should be trained and certified with the appropriate qualifications and authorizations—these need to be up to date.

5. Supplier Terms

What are the terms and conditions for business with the supplier? Look at the payment terms; does the supplier offer credit? Does the supplier work on holidays? 

All of these will help your planning be much more straightforward. A supplier with flexible payment terms like TopUp Mama lets you focus on selling to your customers and pay later when you have made a profit. 

There is much more to consider when onboarding a new supplier to your restaurant. How do you prioritize your Supplier checklist? 

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