Optimal Purchasing Practices in The Food Industry

Food suppliers, exporters, restaurants, and others in the food industry frequently balance their time between collecting raw food supplies and producing finished foods. The end product is clearly vital, but you must also evaluate the ingredients’ quality, flavor, and safety.

As a result, purchasing is a huge aspect of strategic planning in the food industry. Selecting the proper suppliers, the ideal ingredients and maintaining that relationship can have a major effect on your business’s revenue and image.

To help you do that, we’ve provided some tips here.

Photo by Towfiqu barbhuiya on Unsplash 

1. Manage Quality & Cost

The most crucial decision you’ll make in food purchase is balancing cost and quality. If you choose the finest quality possible, you may end up paying so much that you can no longer make a profit, but if you spend too little, no one will want the low-quality food. Instead, look for a healthy balance: suppliers who can offer you a decent bargain on food products that meet the demands and preferences of your target audiences.

2. Be Careful with Suppliers

After that, you must select vendors who are dependable in numerous dimensions. They must transport your goods on time without being told and without mistakes, so you may better manage your services. They must adhere to high safety and health regulations so that you never have to worry about contaminated items.

3. Pay Attention to Details

Check the details before finalizing a deal. If possible, tour the supply site to see the equipment for yourself. Consider all of the aspects and look into the company’s history to ensure you aren’t overlooking anything significant.

4. Use the Right Piece of Tech

It’s also a fine decision to select partners who are eager to collaborate with you through new technologies that can increase communication and simplify product tracking. Penny’s ERP software, for instance, can increase supplier trackability, make sales easier and enhance batch safety. Technology provides organization and additional alternatives for relationship management. Therefore it is an unavoidable aspect.

Bottom Line

You cannot afford to overlook any of the above tips. Of course, in today’s tech-driven market where all businesses are moving towards automation, you have to use technology to keep up with the rest. 

One crucial way to do that is through using a flexible ERP solution. At Penny, we can help you manage your quality and cost, maintain the right relationship with suppliers, and continuously keep track of your operations. Just contact us and let’s get going!



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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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