By Kathryn Kretschmer-Weyland
May 16, 2011

Have you been exploring ways to reduce costs while enhancing the value of your foodservice operation? Many foodservice directors share this focus, given the economic realities of the past several years and consumers’ increasing demands for variety and value. And now, with forecasts for this year’s food market at record highs, it’s more important than ever to have protection against inflation.

Consider taking advantage of the power of collective purchasing to help your business thrive. U.S. Communities’ new contract with Premier Inc. can help you realize greater cost savings, improved operational efficiencies and protection against unpredictable price fluctuations.

With the downsizing, budget reductions and other constraints imposed on many foodservice operations in recent times, government agencies, schools and nonprofits continue to look for ways to operate smarter. The difficulty is doing more with fewer resources. With the U.S. Communities foodservice contract, all agencies, nonprofits, schools (K-12), colleges and universities can enjoy highly competitive pricing and access to resources designed to improve operational performance.

North Carolina State University served as the lead public agency for the contract, while other U.S. Communities Advisory Board member organizations participated as part of the evaluation team.

"We wanted to make sure the contract included top national brands at competitive prices, attractive rebates and incentives, low shipping costs and technical support to help participants easily review and manage their inventories, spend histories and menu planning," said Emory University Food Service Administration Executive Director Patty Ziegenhorn. Ziegenhorn participated on the committee that wrote the foodservice RFP, evaluated the bids and ultimately awarded the contract to Premier.

On average, participating organizations will save five percent over traditional procurement practices. And, by using Premier’s Contracted Manufacturer Agreements (CMAs) with over 190 vendors, foodservice organizations will benefit from discounts of up to 20 percent on more than 32,000 products. Rebates and incentives allow even greater savings, depending on factors such as average delivery drop size and payment schedule. CMAs also protect against inflation, since Premier negotiates a price change clause that determines a price cap as well as how often and for what reasons price changes may be implemented during the term of the agreement.

In addition to saving money, the U.S. Communities food service contract helps organizations save time and costs associated with obtaining quotes, administering contracts with individual manufacturers and managing the program. By piggybacking on the competitively bid award made to Premier by North Carolina State University, U.S. Communities participants can access 300,000- foodservice products through Premier’s broad-line foodservice distributor, U.S. Foodservice, without having to go through the RFP process. Online ordering, culinary clinics, networking opportunities and access to reporting tools that allow 24/7 real-time visibility to product detail by location and/or system, enable foodservice directors to make more informed decisions.

North Carolina State University Hospitality Services Senior Director Randy Lait finds Premier’s reporting systems particularly valuable in managing costs. The online tools allow him to easily identify items such as plastic film and aluminum foil that could be purchased from CMAs in order to realize maximum savings. Lait’s program, which includes campus vending, concessions, catering, dining halls, fast-food and convenience stores, requires a comprehensive approach and so has benefited from Premier’s online tool designed to ensure order efficiencies by projecting consumption rates. Not only does it help his staff order appropriately and reduce waste, dollars that might otherwise have been spent on unneeded items can be redirected to other categories or products that are being tested.

Additional tools provided by Premier through its partnership with U.S. Foodservice include a web-based menu costing tool, chef-inspired recipes-on-demand, turnkey branded retail concepts, nutritional information for health and wellness programs, and assistance from foodservice professionals in troubleshooting operational challenges.

"Premier strives to provide a total solution, not just cost savings," said Premier Continuum of Care Program Development Director Rob Falk. Continuum of Care Services Vice President Joan Ralph echoes this message, saying, "We leverage the size and power of our diverse portfolio to our customers’ advantage. In addition to securing competitive manufacturer agreements, we offer innovative web-based management tools to improve our customers’ operations. And, we remain focused on trends in order to meet our customers’ needs. Currently we’re developing healthy, on'trend recipes, sourcing a growing array of sustainable products and enabling customers to cost-effectively serve choice cuts of meat, specialty produce and sustainable seafood."

Thanks in large part to the popularity of celebrity chefs and the Food Network, the spotlight on food—its nutritional value and how it is grown or produced—is greater today than ever before. Key trends range from healthier menu offerings, to on'trend items like flatbreads and sweet potato fries, to biodegradable disposables.

These changing tastes and attitudes prompted Society for Foodservice Management Immediate Past President Ann McNally to declare, "The concept of three square meals is over. Small meals offered throughout the entire day, which are presented and marketed innovatively, is what we will be seeing more of. Many customers are looking for healthier small meals that help them stay energized and productive so they can complete their work and try to get home at a reasonable hour."

Perhaps the most significant trend at present is consumers’ demand for locally sourced and organic options. U.S. Communities’ foodservice contract provides flexibility in terms of choosing the vendors you prefer to do business with, and Premier has enhanced its ordering and reporting systems to flag locally manufactured and locally grown or produced items. A future update to the system will allow users to define "local" in terms of miles.

Lait has noticed a greater demand for local goods at North Carolina State University, as well as other evolving needs and priorities. With more than 25 years in the industry, he notes, "It used to be that we tried to mimic mom’s home cooking in an institutional setting. Now, our goal is to offer world cuisine…our customers want sushi, Indian and authentic Mexican food."

To meet the increasingly complex challenge of serving the specialty foods customers want while maintaining a profitable business, consider taking advantage of U.S. Communities’ new foodservice contract with Premier. Find ways to cut costs, save time, eliminate guesswork and give your team the tools to operate more effectively and take your foodservice business to the next level.

To learn more, visit http://www.uscommunities.org/premier-usfoodservice/?q=e-uscm or contact Kathryn Kretschmer Weyland with the Conference of Mayors at 301-460-5251 or send e-mail to kweyland@usmayors.org, or contact Jeannie Fanning with the Conference of Mayors at 240-393-9672 or send e-mail to jfanning@usmayors.org.