When clubs join ClubBuy group purchasing organization they are taking the first step toward an improved P&L. Steps two through five (or so) are all about adoption and making sure they are changing the way they buy food and services. The next step may be the most important in the journey to maximum savings and efficiency in the overall procurement strategy.
Optimizations have proven to be an impactful next step. So what is a ClubBuy optimization? This is a detailed buying analysis we perform for clients who spend a minimum of $100,000 annually with US Foods, through ClubBuy. We look at a club's spend with vendors like Cintas, FedEx, Orkin and more - we work with over 1,300 vendors - but we also analyze the spend with US Foods and local produce companies. We are uniquely trained to know when substituting products makes sense and when it won't work.
How much can an optimization save a club? Historically we have seen an additional 8% savings, beyond the 17% we are likely already creating.
How do we perform an optimization? First, we look at invoices and receipts from several different vendors. Keep in mind, we do this for existing ClubBuy members using US Foods as their prime vendor. Once we have received access to spending details, we schedule a facility visit. Before we visit, we crunch the numbers and prepare our presentation.
While on-site, we walk the property. We look for opportunities, the club team may have overlooked.
Our presentation includes a detailed review of the numbers. We sit with the Chef and F&B personnel responsible for ordering products. We sit with the CFO/Controller and review non-food opportunities. This portion of the presentation may include office support and admin personnel.
A ClubBuy optimization is not an indictment of a club's current buying practices. It's not realistic to think a club would understand all of the opportunities for 'spend improvement'. Club teams should be focused on great member experiences, member retention and when appropriate, member acquisition.
The ClubBuy team is happy to work with a club's procurement team or department heads when scheduling an optimization. For more details please email email@example.com