The Program is set up under a “sole supplier” concept, where one supplier is selected for each category of food or supplies. General categories are usually comprised of grocery (non-food items, dairy, chemicals and sometimes produce), seafood, meats and produce. Suppliers for these categories are chosen after a thorough analysis of the property’s operations, menus, current suppliers and product needs and application in order to determine a compatible match. In choosing suppliers, ARO Enterprise strives to develop unique partnerships to help ensure an enduring relationship with the client.
The Program consists of two steps:
- Analyze the property’s current products, procedures, and define or re-define specifications
- An example: ARO Enterprise believes that labels do not belong in a specification. Locking in only one label results in a higher cost. Removing the label from the specification allows the supplier to be as cost-effective as the specification will allow, resulting in a lower cost to the property for the same specification product.
- Suppliers must be financially sound, have a wide range of products in order to provide proper service, and have the ability to carry any and all of the items that fall into their category. They also must buy competitively enough to have good costs on their inventory products. Finally, the supplier is responsible for making sure that good communication to both the client and ARO Enterprise is maintained.
In many cases, ARO Enterprise will also extend its focus from solely food and beverage costs to chemical costs, linen services and energy consumption—any area that affects the client’s bottom line.