We'll keep following last week's thread about Inventory Management and Profitability.   Food is a very unique industry, so making sure we measure ourselves against our industry cousins is important to understand the standard we are measured against. Got to know the other guy's score to see if you are a winner. Again focusing on inventory value and getting it right is one of the two key elements of our T&E analysis.

Twelve years ago we introduced a key measurement of good inventory control: The turn and earn index. The concept is simple but good inventory control figures are important to make sure your turn and earn ratio is correct. Visiting this concept again, and showing how you can measure it, is a good way to grade your business profitability.

For several years the trend has been to eat healthy. We have chronicled the growth of these healthy markets. Today we will take a look at three main areas that have added to this growing trend and the market effects they have on us and our food.

Seems every non 'quick-serve' restaurant is trying to exploit the farm to table movement. We have spoken about this for many years and are fortunate enough to have a number of customers making their living in that market. A lot of people don’t realize the accountability the true players are required to maintain, especially as more retailers are selling produce direct from farmers. Let’s do more explaining.

 

In our spring update, we talked about the ups and downs in the Food Marketplace. With summer almost behind us and we continue to see the landscape change.  For decades food appeared to be a slow changing industry, but now we are truly in a disruptive and transformational state. Time for some quick updates as fall approaches.

This week we dig deeper into Best Business Practices and focus on fabricators and protein processors. These businesses require special techniques to ensure the correct item is be processed and delivered.

You processors have very specific ways to produce items. At $15.00/lb you better make sure you’re doing it right.

 

Last week we discussed some of the advantages brought to the table by employing Best Business Practices. Today we will move to Part 2, Picking the Right Item. Over the years we have harped on getting the catch weights right, but as we will see today that is only one component of our best business practices. Eliminating runbacks and keeping your customers satisfied are critical to your business.

Many of our newsletters over the last eleven years have featured Best Business Practices.  I am proud to say my staff has worked with our clients to implement these ideas during our over 110 combined years of experience.  I’d like to spend the next few newsletters on some of the most relevant to your business creating a Primer, a short informative writing, on Best Practices.

As follow up to last week's News Letter, I would like to discuss once we set the Prices for a customer how do we deliver them to the customer. This is very problematic, you don’t want to make a mistake and give up Margin with the wrong price.

Three years ago we talked about ways to present customers with their pricing. In the interest of getting back to basics we will analyze different methods to calculate the prices for a customer. We have covered this before in bits and pieces but it is a good thing to have these methodologies at your fingertips.



Issue 598 - Setting the Standards

 

We'll keep following last week's thread about Inventory Management and Profitability.   Food is a very unique industry, so making sure we measure ourselves against our industry cousins is important to understand the standard we are measured against. Got to know the other guy's score to see if you are a winner. Again focusing on inventory value and getting it right is one of the two key elements of our T&E analysis.

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