Food and drink buyer training course a first for UK
FPS director Jon Campbell, who has spent 17 years in purchasing and supply chain functions at firms including Bakkavör and Domino's Pizza, said he believed the course was the first of its kind.
“Food is the fastest moving supply chain in the world, and the buying function has become much more sophisticated over the last 10 years.
"The skill set required is also changing with the introduction of tools such as online auctions. Sales people are usually trained intensively, whereas buyers are trained far less intensively."
Topics covered in the new courses include the sources and uses of market information, cost drivers and risk management, while delegates will also address more basic questions such as: “How much should we buy, when should we buy it and what is the risk?”
Given the volatility in commodity prices over the last three years, getting this right was mission critical, he added: "What could be a good price today could be a terrible price tomorrow. But it's also a case of understanding the cost drivers of your suppliers' businesses so that you are basing your decisions on fact rather than your suppliers' pricing policies."
Food inflation
While retail food inflation is expected to remain fairly subdued in the coming year, cost inflation for food manufacturers is likely to be around 5-10% in the coming months, according to Mintec commercial director Nick Peksa. "Dairy is going up, pork has to go up, wheat has to go up, but we've also seen very sharp rises in areas such as macademia nuts and ginger."
Investec analyst Martin Deboo is also predicting a 5-10% rise: “Staples players will be seeing 5-10% input inflation and looking for 2-3% price increases to recover it.
"But this is a much less dramatic situation than in 2008, when the equivalent numbers were 20-25% input cost inflation and 5-10% price increases. Assuming a continued gentle consumer recovery, we think this should be a sustainable dynamic.”
*To find out more about the courses available, click here.
