Hospitality and foodservice operators today face growing challenges in procurement, from managing soaring food costs to finding and retaining skilled staff.
With 76% of operators reporting higher food costs in 2023 compared to 2022, and average wages up by over 30% since 2019, the need for streamlined operations has never been more urgent. Fortunately, hospitality procurement technology provides the tools operators need to navigate these hurdles efficiently and profitably.
Here’s a look at the top 10 reasons to use hospitality procurement technology.
1. Cost Savings
With 60% of operators shopping for new suppliers and 53% cutting menu items in response to higher food costs, procurement technology helps reduce costs by streamlining the purchasing process, negotiating better supplier deals, and automating invoice reconciliation.
2. Increased Efficiency
Time is money, especially when 45% of operators say they need more employees to meet customer demand. Procurement technology automates manual tasks like creating purchase orders, managing suppliers, and tracking inventory—giving your team the bandwidth to focus on operations.
3. Improved Supplier Relationships
Building stronger supplier partnerships is critical in today’s market. Procurement technology provides real-time insights and ensures faster, accurate payments, fostering trust and reliability with your suppliers.
4. Inventory Control
Rising food costs make accurate inventory tracking more essential than ever. Procurement technology helps operators reduce waste, maintain stock levels, and ensure the right products are always available—supporting cost control in every corner of your business.
5. Improved Compliance
Procurement technology simplifies navigating regulations and standards, offering visibility into supplier certifications and food safety practices to ensure you stay compliant and protect your customers.
6. Enhanced Analytics
More than ever, data drives decision-making. Procurement technology provides access to analytics that help operators identify purchasing trends, forecast demand, and make strategic adjustments—critical when average food costs are up more than 20% compared to prior years.
7. Simplified Purchasing
Procurement technology enables operators to search for products, compare prices, and place orders with ease—all while ensuring they’re getting the best deals in a complex supply landscape.
8. Greater Transparency
With supply chains under constant scrutiny, procurement technology offers transparency from farm to fork. Operators gain visibility into product origins and can better anticipate disruptions, ensuring seamless operations.
9. Improved Sustainability
As diners increasingly demand environmentally conscious practices, procurement technology helps operators align with suppliers who use sustainable methods and reduce their carbon footprint through smarter purchasing decisions.
10. Competitive Advantage
In a competitive industry where efficiency, cost control, and customer satisfaction define success, procurement technology gives operators the edge. From sourcing the best suppliers to enhancing operational workflows, technology enables businesses to thrive despite market challenges.
By adopting hospitality procurement technology, foodservice operators can streamline processes, reduce costs, and improve supplier relationships—key strategies for success in a challenging market. With InsideTrack’s suite of advanced solutions, operators are better equipped to tackle rising food costs, meet customer demand, and deliver exceptional dining experiences.
InsideTrack Solutions That Transform Your Operations:
- Price Verification: Ensure you’re always paying the correct price for every item, reducing costly errors and discrepancies.
- Strategic Sourcing and Procurement: Optimize your supplier partnerships and secure the best deals to maximize your budget.
- Inventory and Compliance: Gain real-time visibility into inventory levels while ensuring regulatory compliance across the board.
- Contract and Rebate Management: Automate tracking and maximize the value of your contracts and rebate programs.
- Business Intelligence and Data Visualization: Harness actionable insights to drive smarter decision-making and uncover growth opportunities.
Now is the time to embrace the future of foodservice with InsideTrack. From price verification to robust analytics, these tools aren’t just solutions—they’re your competitive edge in an evolving industry. Fill out the form below to partner with InsideTrack today.
