Critically Evaluating F&B Purchasing and Supply Chain Management

This report critically evaluates the role of purchasing and supply chain management (SCM) within restaurant and bar operations, emphasizing how effective strategies and cost control measures can provide a competitive edge in the crowded food and beverage (F&B) marketplace. The analysis draws upon various academic sources, highlighting the importance of strong supplier relationships, efficient SCM technology, and proactive cost-reduction strategies. Key themes include the significance of innovative technologies, merger and acquisition strategies, and cost-to-serve analysis in optimizing operations. The report emphasizes the need for F&B businesses to foster strong communication and teamwork, particularly between purchasing, accounting, and production departments. It underscores the importance of strategic supplier partnerships, effective raw material procurement, and the application of relevant laws and regulations to ensure competitive advantage. The report concludes by highlighting the value of benchmarking and implementing core competencies to drive success in the F&B industry, along with the significance of developing better communication using innovative technology to enhance customer demand.

Managing Profitable Food and Beverage Operations

Title- Critically evaluate the role of purchasing and supply chain management
in restaurant and bar operations while considering how this, and a
proactive approach to cost control, can provide these businesses with
competitive advantage in a crowded marketplace.
As per the view of Evranuz (2012), role of purchasing and supply chain management
(SCM) assists in becoming potential and valuable way of securing competitive advantage in
order to enhance the business performance (Evranuz, 2012). It is essential for food and beverage
business to maintain good relationship with suppliers by providing them timely payment so that
they deliver best services to businesses. However, Lui and Lai (2010), argued that purchasing
department within the food and beverage business began to realize that it is not enough to
enhance the supply chain of business and attain competitive advantage. It can be evaluate that
supply chain and transportation network design technology assists in enabling food and beverage
companies to stimulate SCM and reduce the cost and attain competitive edge over rivals (Lui and
Lai, 2010).
According to Rutherford (2010), within food and beverage (F&B) industry,
manufacturing strategy is one of the crucial decision that firms face and thus it helps in making
and distributing their products so that best decisions can be taken. Another crucial decision
within such stage is that different challenges faced by F&B operations in relation to lower down
the cost operations so that competitive edge can be attained in marketplace (Rutherford, 2010).
Companies focuses upon tapping target market and providing them low price food and beverage
options so that it gains high profits and success. There are different factors that helps in reducing
the cost factors such as transportation, inventory, raw material costs and tax etc. Tsai (2012),
stated that it is also essential for firm to implement innovative technology so that they can serve
the customers effectively and attain satisfaction. Further, through adopting merger and
acquisition strategy it assists in integrating new supply chains into an existing network so that
such initiatives fails to meet the expectations of shareholders (Tsai, 2012).
As per the Bottani and Galati (2010), F&B companies also focuses upon undertaking
merger and acquisition strategy so that they can develop a new business supply chain initiatives
which fail to meet the needs of shareholders. It can be assessed that food and beverage
companies mainly try to minimize their cost so that competitive advantage can be attained.
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Furthermore, using cost to serve analysis is the best method through which food and beverage
businesses identifies the value of the product and thus decide the price so that profits can be
attained. Here, purchasing and supply chain department plays a crucial role in identifying the
cost of the products which needs to be lower down so that competitive edge can be attained over
rivals (Bottani and Galati, 2010). In the current era of globalisation, there are various competitors
available within food industry which give tough competition to each other. Therefore, it is
essential for businesses to introduce innovative products or control its cost so that target market
can be attracted towards firm in order to enhance the market share (Díez-Leturia and García-
Jalón, 2011).
McGinnis and Kraak (2006), stated that F&B businesses plans to improve its production
capacity planning by utilizing existing capacity for lowest total cost so that firm can perform
more effectively in order to produce quality good and bar products in order to enhance customer
base. Firm also aims to lower down its cost and ensure producing fresh products so that quality
of firm can be enhanced among rivals and attain competitive edge (McGinnis and Kraak, 2006).
Food and beverage industry identifies the significance of fostering an environment that stresses
the best communication and teamwork among all the departments within the firm. Hotel business
involves purchasing and supply chain management as an crucial department that helps in
controlling the cost so that supportive and collaborative environment allows business to support
each other while working towards department and company goals. However, Suh and Eves
(2010), argued that supply chain is used in order to describe the collaboration of different
businesses in regard to assist firms and move products or services from suppliers to customers.
Food and bar options involves different suppliers of raw materials, producers of final products
and the end users in regard to develop relationship with suppliers and purchasers so that it does
not impact upon the overall success of firm. Adopting cost control measures and advantages
obtained from building best relationship and partnership in the industry helps in attaining desired
success (Suh and Eves, 2010).
Further, F&B business aims to develop purchasing functions by adopting effective raw
materials and develop relationship so that best responsibilities can be attained. Here, in order to
reduce cost, company identified different supplier opportunities and paying attention to industry
trends and develops new products so that competitive edge can be attained over rivals (Julien,
2011). Hence, it is crucial option that helps firm to focus upon through purchasing and attaining
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supply options so that cost can be minimized in relation to obtain success. Hotel businesses
focuses upon their purchasing and supply chain management in restaurant and bar operations so
that it assists them to control the cost within firm and thus provides chance to firm to obtain
competitive edge in terms of high market share as stated (Davis and et.al., 2012). Food and bar
operations within hospitality firm aims upon managing its purchasing and supply chain
management functions so that they can carry out the best responsibility towards firm and satisfy
individual needs. For instance, purchasing raw material assists in identifying the development of
new raw materials in order to develop product development professionals so that best
relationship can be developed (Dimitriadis and Stevens, 2008).
As per the opinion of Drake and et.al., (2013), internal relations assists in identifying the
different business functions which must work together in order to achieve maximum efficiency
and thus attain optimal profits. Hence, the purchasing department should work with the
accounting and finance department in order to secure the funds and track payments for material
purchases and try to minize3 cost so that competitive edge over rivals can be attained (Drake and
et.al., 2013). However, Ferreira and et. al. (2012), argued that purchasing department must also
work with production and forecasting teams in order to make sure that they timely delivery of
materials and thus involve marketing and sales department so that hotel can enhance its market
image and thus improve the efficiency so that desired goals can be attained (Ferreira and et. al.
2012).
Moreover, in order to maintain customer satisfaction helps in attaining ultimate goal so
that change can be implemented within marketplace and attain customer service. French, Story
and Fulkerson (2002), stated by firm possess the ability to adopt essential information and
desired products in order to give tough competition to rivals in the market. Also, businesses are
able to obtain effective food and service department helps in improving the business success.
Attaining competitive advantage helps business to enhance the market share and attain
satisfaction (French, Story and Fulkerson, 2002). Purchasing department is responsible for
procuring supplies and thus it largely involves order placing and influences the people to
improve the market share. However, Gomes and Lobstein (2011), argued that purchasing and
supply chain within restaurant and bar operations assists in improving the competitive advantage
so that success can be attained in an effective way. Business uses effective purchasing and
supply chain so that cost control needs to be practised in relation to attain satisfaction. Another
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crucial role of the purchasing department is the source supplies and parts and then purchase them
so that business decides to purchase the raw material in such way that helps in lowering down
the cost in order to improve the efficiency of firm in market (Gomes and Lobstein, 2011).
As per Gootman, McGinnis and Kraak (2006), food and bar operations are required to
manager supplier relationship and negotiate contracts for the supplies so that they are responsible
for monitoring the supplier's performance. Purchasing department needs to assess the suppliers'
performance and quality control in order to monitor deliver times, quality, cost and performance
so that best results can be attained. Here, suppliers helps in maintaining effective relationship
with the environment so that working conditions can be improved in relation to enhance the
performance targets and thus improve the training and development program in order to attain
desired results (Gootman, McGinnis and Kraak, 2006). Moreover, purchasing department
undertakes cost control measures in order to enhance the performance and thus responsible for
maintaining strict cost control measures so that purchasing raw material for hotel assists in
enhancing the sales and profitable of firm. However, Man, Lui and Lai (2010), argued that firm
aims to buy the products at best price therefore purchasing department requires ensuring
suppliers themselves to get the lower cost and thus enhance the sales and profitability of firm.
Further, it assesses that purchasing department needs to be aware regarding applying the
purchasing and supply chain management so that effective regulation can be developed in order
to attain desired results. It is also essential for the purchasing department to be aware of all the
different laws that could be applied to the purchasing of raw material within firm. For private
firms, it is the primarily contract law that helps in benefiting the government bodies in order to
regulate the purchase so that competitive advantage can be attained (Man, Lui and Lai, 2010).
Meler and Cerovic (2003), stated that supply chain management practices identifies a set
of activities undertaken within firm in order to promote effective management of its supply
chain. It also describes the latest evolution of SCM that involves supplier partnership,
outsourcing, regular flow of material etc. in order to undertake effective purchasing quality and
customer relations so that success can be attained. Adopting strategic supplier partnership assists
in developing long term relationship in order to develop strategic and operational capabilities of
individual participating business to attain significant benefits (Meler and Cerovic, 2003).
Develop strategic partnership assists in building long term relationship within business and
suppliers. Thus, it assists in improving individual capabilities so that desired success can be
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attained. Food and bar operations helps in entering into purchasing and supply chain
management relationship so that cost control can be attained in order to measure effectiveness
and attain competitive edge over rivals.
Role of purchasing and supply chain management within restaurant and bar operations
plays a crucial role because it helps them to identify their strengths and attract customers from
market. It is a proactive approach because it assists in controlling cost in order to provide
businesses with competitive edge in the crowded marketplace so that success can be attained.
Company also aims to develop effective customer relationship so that best results can be attained
in order to improve the market share and thus enhance the sales and profitability of firm in
market. Motherway and Vargo (2013), stated that purchasing and supply chain management
within restaurant and bar operations helps in considering the cost control measures so that
delivering the products or services at low cost helps in attaining competitive edge over
competitors. Improving restaurant and bar operations assists in improving competitive advantage
so that cost can be controlled and thus it leads to attain firm towards a competitive marketplace.
Further, it also helps in improving the business performance and thus attain organizational
objectives (Motherway and Vargo, 2013).
Implementing benchmarking method helps in practising hundreds of companies that have
learned actually to attain competitive edge and thus apply best results so that success can be
attained. Using purchasing and supply chain within the restaurant and bar operations that helps in
attaining core competencies so that success can be attained. Restaurant and bar operations'
department within hotel requires developing better communication by using innovative
technology so that they are able to share crucial information with each other and thus enhance
customer demand (Nestle, 2013). Suppliers and purchasers at this point of time identifies the
requirement of resources and thus enhance the sales and profitability of firm in market.
Additionally, firm also access to business point of sales data that helps them to anticipate at the
time when it will take place in order to improve the performance and obtain desired goals.
Management of firm aims to identify the different cost control measures that assists in
providing opportunities to firm in order to improve the purchasing and supply chain management
system in order to enhance the sales and profitability of firm. Restaurant and bar operations
requires maintaining cost leadership so that competitive advantage can be attained (Food and
Beverage Industry Outlook Survey. 2013). Main reason behind this is that business aims to adopt
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cost leadership so that it assists them to eliminate waste and thus decide firm to build effective
relationship in order to improve competitive advantage and attain success. Evranuz (2012),
argued that adopting cost control measures assists in identifying the role of purchasing and
supply chain management systems so that best results can be attained in an effective way. Firm
also emphasizes upon delivering the best product quality so that managers helps in improving the
business performance (Evranuz, 2012).
Furthermore, improving reliability assists in producing or providing consistent quality of
products or services over a period of time and thus enhance the reputation of firm in market.
Business also undertakes reliability measures so that they can produce or provide consistent
quality of products in order to enhance the sales and profitability of firm in marketplace. In
addition to this, quality is one of the significant part within firm in order to forecast the business
opportunities so that actual requirement can be attained (Food and Beverage Operations
Manager. 2013). The team of hotel helps in providing daily, weekly, monthly and annual
estimation so that best results can be attained. Further, business also focuses upon identifying the
flexibility so that they can deliver best services to customers and thus attain competitive
advantage in crowded marketplace.
It is essential for firm to adopt effective supply chain trends so that it can be used in order
to improve the modern business environment and attain competitive edge within firm. Restaurant
and bar operations helps in specifying the use of purchasing and supply chain in order to improve
their competitive advantage. It is also essential for firm to improve its operational performance
and efficiency can be improved so that it impacts upon the changing operational environment
and thus success can be attained in an effective way (Rutherford, 2010). Business also aims in
delivering standardised services so that target customers can be attracted. A supply chain system
is based upon improving the performance of firm and delivering the products or services on time
so that set targets can be attained effectively and efficiently. Operational performance and
efficiency is the crucial part as it assists in improving the business performance so that it can
assist in changing operational environment so that success can be attained effectively (Díez-
Leturia and García-Jalón, 2011).
As per the opinion Suh and Eves (2010), of business aims to provide quality products or
services in relation to render best quality services to customers and enhance sales performance of
firm. Purchasing and supply chain management helps in enhancing the restaurant and bar
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operations so that best results can be attained. Using purchasing and supply chain within
restaurant and bar operations using cost effective methods in order to improve the cost and
quality of firm in marketplace. Business also focuses upon improving the business performance
so that set targets can be attained in an effective way. However, Davis and et.al., (2012), argued
that firm also aims to enhance its restaurant and bar operations so that more number of customers
are attracted towards firm an thus enhance the sales and profitability of firm in market. In order
to enhance the firms' performance and thus attain desired results so that success can be attained
in an effective manner.
Business also faces challenges in order to manage cost and thus improve the food service
industry. It helps business to carry out best practices in relation to adopt effective products or
services so that success can be attained efficiently. Purchasing and supply chain department
helps in considering the business operations successful so that standardized services can be
created in relation to provide optimum solution so that best results can be attained. It also assists
firm to maintain close customer relationship and thus improve the business performance so that
success can be obtained (Dimitriadis and Stevens, 2008). For instance, hospitality industry
assists in enhancing the purchasing and supply chain department so that restaurant and bar
operations can be improved in relation to attain competitive advantage so that success can be
attained.
Furthermore, the above statement helps in assessing the fact that delivering standardized
quality services assists in using cost control measures so that businesses are able to attain
competitive edge over marketplace. Restaurant and bar operations demonstrates the proactive
approach to cost control and thus help firm to provide cost control measures so that competitive
edge can be attained in market. Gaining competitive advantage assists in improving the financial
performance in market and thus improve the market share so that sales and profitability can be
attained in an effective way (French, Story and Fulkerson, 2002). It is the best way through
which food and beverage operations assists in managing its operations profitable in market. It
also assists in improving the business performance so that set targets can be attained in an
effective way.
Managing profitable food and beverage operations assists in improving the business
performance so that success can be attained efficiently. It is the best way through which
competitive edge can be obtained. Hence, it is significant for firm to carry out best practices in
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relation to enhance the business objectives. Company aims to focus upon delivering quality
services to clients in relation to attain competitive edge over customers. Thus, it is a profitable
business which assists in managing supply chain management and attain customer service so that
set targets can be attained (Gomes and Lobstein, 2011). Business also aims to enhance the
customer service and attain competitive advantage in a crowded place.
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REFERENCES
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Man, D. C., Lui, S. S. and Lai, J., 2010. New product development for a food and beverage
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Online
Food and Beverage Industry Outlook Survey. 2013. [Online]. Available through:
<https://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/food-
beverage-outlook-survey-2013.pdf>.[Accessed on 26th July 2016].
Food and Beverage Operations Manager. 2013. [Online]. Available through:
<http://www.hcareers.co.uk/seeker/search/view?jobAdId=597F599261E2A494>.
[Accessed 26th July 2016].
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