Sodexho switches to direct supplier buying

10 March 2004 by
Sodexho switches to direct supplier buying

Sodexho is making changes to its purchasing strategy and dealing directly with growers and abattoirs instead of using distributors to source its fresh foods.

Speaking at the conference Beyond Retail: Your Future in Foodservice, held last week in Kidderminster, Tim Egleton, Sodexho's commercial catering and retail manager at Herefordshire Hospital Trust, told delegates: "We've recruited a team of specialist buyers to go to farms and abattoirs. We're trying to reduce costs by going straight to the producers and renegotiating costs with our distributors."

In the long term, Sodexho aims to save money by negotiating directly with its chosen growers and paying distributors only for delivery services. Sodexho fixes prices as much as one year in advance for meat, fish and poultry, and by the month for fruit and vegetables.

Egleton said: "This builds long-term relationships. If there are fluctuations, we expect the supplier to hold to the agreed price." Sodexho also charges potential suppliers for rigorous hygiene tests.

But one West Midlands supplier criticised Sodexho's purchasing policy, asking: "If we don't get a decent price and we don't maintain product identity, why should we try and sell to you?"

Egleton replied: "We make no apology for getting the best price. It's business, and it's tough."

Author and food writer Charles Campion commented: "Self-interest always survives. Local produce is becoming a cause c‚lŠbre, and companies will use it for their own ends."

Interested suppliers should approach catering managers or Sodexho's distributors, Egleton said. "Where our customers ask for specific products from a local supplier," he said, "there's an opportunity for that product to get listed if they can guarantee a continuous supply of the quantity required."

He added that, if small producers formed co-operatives and established a central food preparation depot, they would be in a better position to be listed as suppliers with Sodexho.

Does Sodexho buy British? Percentage of produce or meat which is British (annual average) - Lamb: 30% - the main supplier is New Zealand, which Sodexho says provides better consistency - Beef: 79% - Pork: 95% - Poultry: 85% - Potatoes: 90% - Vegetables: 40% - increases to 60% in winter - Fruit: 35% Sodexho says it is committed to increasing these percentages.
Food suppliers to the contract catering market The number of food suppliers to contract caterering has decreased sharply in the past few years, from 5,455 in 1995 to 1,625 in 2002. According to the British Hospitality Association's Food and Service Management Survey 2003, there is a general trend for major companies to deal with a much smaller number of suppliers, because they gain benefits in management and administration as well as purchasing. A speed dating-style event for suppliers and caterers will be held in London this month. Networkers will have just five minutes to make a pitch, exchange business cards and move on. Organiser Jenny Young explained: "We thought the speed-dating formula could be used to bring producers and buyers together in a room and enable them to meet as many people as possible." The event, organised by Foodwise, takes place at Bar 38, 30-33 Minories, London, from 6.30pm to 9pm on 24 March. Contact Young by e-mail at
How it can work Natural and organic yogurt producer the Dairy House, in Weobley, Herefordshire, approached Tim Elgeton of Sodexho about possibilities for supplying Herefordshire Hospital Trust, and he believed there would be a demand for its products at the hospital. The Dairy House was then referred to Sodexho's purchasing department, but failed to get on its supplier list. The company then approached Redbridge Foodservice, one of Sodexho's national distributors, with a recommendation from Egleton. It is now supplying the hospital via Redbridge Foodservice.
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