auditing

Procurement audit

Are you confident you are receiving the keenest prices in the market place? The PIP Audit will make sure you are.

Keenest prices?

Margin erosion, reduced turnover and management pressure have forced many catering operations to revisit their supplier agreements. But what if you don’t have the time, expertise or resource to ensure you’re achieving the keenest prices possible in the market?

Our procurement auditing service has become exceptionally popular over the past few years. Like many of our new clients, you want to know that you are getting the finest quality produce at the best price. You also need to have the confidence to assure your board members that your suppliers are cost effective.

Why should I audit my supplier base?

Many of our clients seek to reduce their catering costs while increasing the quality of produce, products and services that they receive. Others seek to reassure themselves and their senior managers that their procurement function is efficient and effective. The current climate has increased the requirement for strategic procurement audit from specialist purchasing professionals with a proven track record. Due diligence plays an important part in our clients’ responsibility.

How does it work?

  • We analyse  a 12  months period of invoices from your catering operation
  • We examine your suppliers and benchmark them against:
    • the best suppliers in the market place for:
      • Long standing competitive pricing
      • Service standards and response times
      • Quality and freshness of produce, products and services
      • Local sourcing
      • Health & Safety and environmental standards
    • industry indicators, such as:
      • Cost price index (CPI)
      • Retail price index (RPI)
  • We test the current market pricing and negotiate deals on your behalf, as required
  • We conduct thorough price traceability
  • We undertake trend analysis to identify if you are not benefitting from fluctuations in market pricing.

Timing

  • Allow approximately 3 weeks for the procurement audit process after receiving all the relevant information.
  • Auditing can be a regular opportunity to monitor and manage the purchasing portfolio or a one-off project

Next steps

  • We report back to you with:
    • Supplier benchmarking, price evaluation and tactical recommendations
    • Detailed full trend analysis
  • The process is designed to help you identify where the priorities are, create strategies that put actions and resource in place to make changes
  • The onus is on you to take action with our support if required from your audit report – it’s designed to empower your team and provide them with the tools, techniques and know-how to get the most from your supplier base.

To find out how you could unlock time, money and resource with a procurement audit of your supplier base, contact Diana Spellman on 0207 410 7536 or Anthony Adams on 07767 340 540.