Food procurement is a highly volatile commodity market. There are several reasons why food prices rise and fall, which include economic (exchange rates), legal (new legislation), the cost of raw materials (fuel, packaging), increased global demand for certain products (meat, dairy), weather conditions – just to name a few. Furthermore, buying products outside of an agreed list and being charged the wrong price are additional problems that will impact your budget/profit margin.
Few universities have the dedicated resources, time and specialist food market knowledge to manage supplier price negotiations, check invoice prices line by line and monitor contract compliance.
Minimise your price increases
Post-tender price management is a key part of our bespoke professional procurement service. It is our job to limit any price increases and decreases are past on and ensure that our clients obtain the best pricing for all their products for the whole duration of contract. In the contractual terms with suppliers and manufactures we will agree price review dates and notice periods.
Our extensive product pricing database (constructed from over 40,000 electronic invoices that we manage each day) enables us to compare any food prices against the market and other clients or suppliers, ensuring that any necessary price rises are fair, reasonable and as competitive as possible.
“Few universities have the dedicated resources, time and specialist food market knowledge to manage supplier price negotiations, check invoice prices line by line and monitor contract compliance.”
Our food procurement experts have detailed knowledge of the food market and foodservice supply chain. They manage all price reviews on behalf of our clients and provide detailed evidence to show price reviews are fair and just. They provide clients with impartial view – the facts of what is happening in the market.
They also provide advice on what actions should be taken to minimise any price increases e.g. switching products, brands or pack sizes, but not at the expense of quality.
Contract compliance monitoring
On top of all that, we help clients with contract compliance monitoring. We highlight all purchases outside of your agreed list. If any new products need to be sourced we will negotiate the most competitive price before adding them to the contract.
We will automatically check all your invoices (line by line) against your agreed contact price list to ensure you are not overcharged. We arrange credits on your behalf if prices differ.
Pelican Procurement Services is a procurement food and beverage supply chain specialist and provider of an award winning P2P procurement system.