5 Major Challenges in F&B Procurement

5 Major Challenges in F&B Procurement

5-major-challenges-food-beverage-procurement

F&B business procurement may at times be tricky to manage. Everything from budget to cost should be monitored or else it can create a big problem in the business flow.

It takes thorough planning to manage a business in the food and beverage supply chain, and good analytics and software can go a long way to smooth out the process.

Here are some of the procurement challenges commonly faced in the industry.

1. Being Environmentally Friendly

More and more F&B companies are making sustainability as the top priority in terms of purchasing decisions. They look for products with minimal packaging and with materials that can be recycled.

However, it can be a challenge to find or produce packaging that meet environmentally friendly qualities but are still affordable and practical.

Such packaging need to be safe for food and able to contain the product without breaking or leaking. Delivery wise, they also need to be able to withstand transit until its final destination.


2. Meeting Local Products’ Demand

Local products are becoming more popular in the market. However, these products can be more expensive and harder to acquire in sufficient quantities.

Therefore, it is not uncommon to see cases where farmers’ markets, independent stores, and small restaurants drawing some consumers away from larger chain stores because of their ability to offer these local items.


3. Changing Food Trends

Some trends stayed and last for a long time in the food and beverage industry. However, others are simply fads and can disappear soon after they rise to popularity.

This can make it difficult for restaurants and vendors to keep up. The reason is simple, new products take time to develop and to perfect.

Therefore, it can be hard to find a supplier that can meet consumer demand when a trend arises suddenly. Companies need to overcome the challenges of getting in on a new trend early but with difficulties to source for quality products.


4. Supplier Management

Food and beverage procurement tends to involve a large number of suppliers, even for smaller businesses.

Finding good suppliers with favourable deals, as well as keeping up-to-date with changes in pricing, terms, and other factors, can be a very complex task.

Good procurement management software and competent staff are then, essential to get the most value in the F&B supply chain.


5. Keeping up with Regulations

Laws can change frequently too. It is very important to be aware of the regulations that affect your business. For F&B businesses that operate cross-country or internationally, this can be even more difficult as laws will vary from one country to another.

To add up, if suppliers are in different locations from your business, this makes it even harder to manage. It is necessary to ensure that the supplies and procurement processes of all suppliers comply with laws from each region where your business runs.


How Dropee Can Make This Easier?

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We have listed down the key enhancements to expect when you sign up with us below;

I. Well-targeted promotional campaign: Now, suppliers can launch promotional campaigns where they can choose to specify which customers that are eligible for additional discounts from the listed prices on Dropee.

2. Better streamlined ordering process: With our new interface, the process of ordering can be done more efficiently where F&B owners can place new orders or re-order directly without relying on the supplier’s salesperson for help.

3. Easy wholesale pricing comparison and discovery: Dropee allows retailers to discover products easier based on their categories of interests such as F&B, restaurants, and others which are curated by Dropee team for each category after making sure that the products listed are at wholesale prices.

4. Access to acquire small business financing: Dropee users are now able to apply for SME business financing up to RM 200,00 to help businesses grow in terms of cash flow and capital, inventory financing, and general expansion. Click here to know more.

READ: Best 5 Business Financing Options for F&B Owners


Sign Up With Dropee. It’s Easy!

A B2B eCommerce Marketplace, Dropee strives to connect suppliers and buyers through digitalization by streamlining the procurement fulfillment processes across the supply chain with better convenience and efficiency.

Interested? Sign up with Dropee HERE or visit our website Dropee.com for more info.

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