Special Report
Purchasing Forum Breakfast:
The buying game

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In an economic environment where driving revenue and maximising bottom line is the major focus, what role do purchasing decisions play? Has price overtaken other issues? Or have organisations sought to utilise their buying relationships as part of a wider agenda to evolve the business model?

A Purchasing Forum Breakfast hosted by EP magazine and sponsored by Beacon Purchasing was launched today to raise the level of discussion and debate in this area. Held at 1 Lombard Street restaurant and attended by people involved in purchasing decisions across the hospitality industry, the forum's aim is to high-light the topics and issues impacting decision making in this area.

The subject of the forum was: Effective purchasing is all about price...or is it? In an open discussion the group challenged this statement and raised a number of other points for consideration, often relating to the fact that buying decisions are increasingly focused on adding value to the client or consumer. As one attendee commented;

"If you cut the purchase price you lose something, whether it is through the supplier service or quality. Value is not always just quality and price - its quality, price and service."

The forum's discussion

A number of thought-provoking points were raised by the group on the following themes:

• Local v. national supply
  "Investing in suppliers is similar to investing in chefs; we need to invest in local suppliers to have them as part of our future."
• The effect of cutting purchasing spend on the customer experience
  "You have to buy the right product to suit your business, so it is not just a price issue but about the deal you can get and the knock on effect. It’s all very well to say we need 75% GP but it’s no use if you have an empty restaurant?"
• Relationships
  "The accountability between buyer and supplier is a two way street. We have a responsibility to our suppliers and if there are small suppliers going to the wall, then it is an industry failing. It's like saying we liked you when times were good but now times are bad, goodbye."
• Knowledge & best practice
  "People ask how much Sauvignon Blanc is; it’s like saying how much is our meat."

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