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Healthcare. How will you manage costs during these trying times???. Budget Cuts : (legislation changes, local budget reductions, is census low?) “I can’t increase my rates!” How can I purchase “SMART” without sacrificing quality AND MEET REGULATORY STANDARDS???.
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How will you manage costs during these trying times??? • Budget Cuts: (legislation changes, local budget reductions, is census low?) • “I can’t increase my rates!” • How can I purchase “SMART” without sacrificing quality AND MEET REGULATORY STANDARDS???
FOOD PURCHASES APPROXIMATELY 40% OF TOTAL SPEND IN SENIOR LIVING !! • Add chemicals (foodservice, housekeeping, laundry) and paper goods and this number continues to increase.
CPI FOOD AND BEVERAGE • 2008 overall 5.4% increase • (4.8% 1st 6 months, 5.9% 2nd 6 months) • 2009 overall 1.9% increase • (3.7% 1st 6 months, 0.1% 2nd 6 months) 2010 projection……. 2.4% increase 1st 6 months
But I’m “in budget” so I don’t have to worry about anything • REMEMBER….THERE IS ALWAYS OPPORTUNITY
Owners / Administrators MUST stay involved in purchasing decisions. • If food service manager is making all purchasing decisions then ask the following: • Does he/she understand your current purchasing program? • Does he/she work with your food vendor to maximize these opportunities?
Do you have an AGGRESSIVE & CONSISTENT margin schedule? • Are you receiving additional incentives based on your delivery size and cash flow efficiency? • Do you have price protection against inflation due to extreme market conditions? • Are you utilizing Cost Management Tools and Services available from your foodservice supplier and GPO? • Financial reviews that focus on key drivers in your operation, product selection, and much more
Very important service is PRODUCT SELECTION • Work with your supplier to be sure you are using the right products for the right applications • ARE YOU GETTING THE BEST “BANG FOR YOUR BUCK”
Savings Buckets Manufacturer’s Deviated $ On Invoice Cost Management Solutions Manufacturer Rebates AR Rebate Delivery Size Rebate
Win-Win-Win GPO & Supplier: WIN • Market Share • Growth Facility: WIN • Savings • Effectiveness • Manager: WIN • Leadership Role • Savings