Food distributors, producers, restaurants and other food companies often split their attention between acquiring raw food materials and assembling or processing them into finished goods. The finished product is obviously important, but you also need to consider the safety, nutrition, and quality of the ingredients.
Accordingly, purchasing is a major area of strategic development for most food companies; choosing the right suppliers, the right ingredients and sustaining that relationship can drastically impact both the profitability and reputation of your company.
So what are the best purchasing practices for food companies to maintain?
The essentials of ingredient purchasing
These are some of the most essential practices to hold:
Balance cost and quality
The most important choice you’ll make in food purchasing is the balance between cost and quality (which includes a number of sub-factors). If you opt for the highest quality available, you might pay so much that you’re no longer able to make money, but if you go too cheap, nobody will want to buy your products. Instead, strive to find some middle ground: suppliers who are able to give you a good deal on food products that fit the needs and desires of your target demographics. For some companies, that might mean shopping locally or through sustainable farms. For others, it may mean looking internationally to find the perfectly cultivated ingredient. Pay close attention to how the cost of each product will affect your bottom line.