Tom Finn at Spend Matters recently published an article entitled, "Indirect Spend Management: An Easy Putt for the Quick Serve Restaurant (QSR) Industry" that discussed the industry's unique challenge dealing with indirect spend.
The article notes the benefits of getting indirect spend under control, but highlights that the indirect spend transactions for QSR's are, "high frequency, fragmented and often made with unapproved suppliers."
Readers of the article will learn that visibility and accountability are lacking with QSRs when it comes to indirect spending, causing quality and performance issues to go undetected. In addition, since indirect spending is being left to local or regional managers, and item details are rarely captured, it becomes nearly impossible for corporate procurement leaders to do what they do best, "take advantage of their buying leverage".
Mr. Finn points out that bringing indirect spend under control is an easy win, with a "can't miss business case". He notes that it requires data collection and consolidation, as well as creating an environment where requisitioners, "see only the catalogs of goods and services already under contract from selected suppliers." This restricted view ensures that, "volume commitments can be achieved and off-contract spending reduced."
When discussing the opportunity to bring indirect spend under control at QSRs, Mr. Finn notes that BuyerQuest brings, "capabilities distinctly tailored to this sector... as its solution allows for customization at the store level. It supports a hierarchy that works well for QSR, hospitality and, more generally, certain types of retail. Such a marketplace environment offering can also be dropped in with minimal disruption — and tie back to the aforementioned and more deeply embedded/fixed systems that manage direct."
BuyerQuest's client-branded Marketplace allows businesses to customize the requisitioners experience to ensure a seamless experience. Through Cognitive Buying, users search results show only relevant items. The easy to use BuyerQuest interface promotes high levels of adoption, particularly in the diverse geographic environments associated with the QSR market.
As Mr. Finn notes in his article, the business case is compelling. For one quick service restaurant with an autonomous culture, BuyerQuest helped drive user adoption and contract compliance across a community of nearly 17,000 restaurants.
To learn how BuyerQuest can transform procurement at your Quick Service Restaurant, visit our solutions page.