A new till-to-delivery online purchasing system introduced at Hardys & Hansons is helping to ease the workload for its busy licensees. Phil Mellows reports.
A fully automated purchasing system linking pub EPoS to suppliers is now live across Hardys & Hansons' 80-strong managed pub estate. Roll-out of ABS Tradesimple software was completed in September, creating a seamless link between ordering stock and payment. The system cuts down paperwork in the pubs, minimises errors through automatic invoice reconciliation, reduces stockholding - and frees up the Nottingham brewer's telesales force to focus on expanding its freetrade business.
David Cook, head of IT, led the initiative which, most challengingly, involved getting all Hardys & Hansons' key suppliers on board.
"We wanted a solution that was tailored to our needs, would fit in with our existing systems and would enable us to keep using the suppliers we have," he says. "Tradesimple has the ability to deal with any supplier in any format. Our pubs can order using email, fax, EDI (electronic data interchange) or whatever best suits the supplier, some of which have only limited IT resources."
Tradesimple is also linked existing systems to the brewer, including Navision at head office and Zonal EPoS at the pubs.
The implementation process has been long and thorough, starting with supplies from the brewery and then expanding out to food and other suppliers, each of which had to be closely worked with to achieve integration.
"We learned a lot," says David. "We encountered a wide variety of IT systems and experience and we had to allow plenty of time for testing and converting their price list procedures to a spreadsheet."
Getting the pubs geared up to use Tradesimple was another challenge.
"There are a variety of skill levels within the estate, among both managers and chefs, who would also be using the system," explains David. "We had to do a lot of hand-holding throughout the process.
"Each pub needed at least two training visits because managers, their assistants and chefs would be on different rotas. Training is most effective when carried out on the job, when they actually have to place orders and receive deliveries.
"We learned to take it slowly at first and let the problems arise so we could make sure they were dealt with. We have kept monitoring how the pubs are getting on and receiving feedback from them."
Buying food on the web
Online purchasing is beginning to take hold in the pub industry, not just in managed groups but among independent licensees.
Since John and Julie Buckland left behind their lives as successful Wetherspoon managers to take over their own freehouse, internet ordering and information service Mymarket.com has proved to be an integral part of their business.
The Virginia Ash in Henstridge, Somerset, was in need of a serious overhaul when the Bucklands moved in. They decided to place great emphasis on rebuilding a successful menu and, as customers of foodservice wholesaler 3663, they heard about Mymarket.
Eighteen months on and John and Julie are well-established customers of the site. Although they source their meat and vegetables locally they purchase most of their other food supplies, as well as juices, mixers, waters and their cleaning supplies, from Mymarket. They also use it for catering equipment.
"Ordering online makes it easy to fit in my orders when I have some spare time throughout the day, with no restrictions," John comments. "With the long and somewhat irregular hours needed to build the business, this is a huge advantage".
He also finds the site's search option and other added-value features, such as order templates, a great help.
"I tend to create my orders throughout the week, adding to them as and when I need more stock, and I can clearly see what is available or check the status of my order. I'll then typically submit my final order every Wednesday and receive everything I need for the week ahead within 24 hours."
"Ordering with Mymarket is also a good way to guarantee value for money, as I can clearly see what promotions are available and where we could cut costs."
"I view Mymarket as a helpful business building tool," he adds. "The convenience means I save a great deal of time and can operate my pub more efficiently. The site also offers practical advice including up-to-date information on industry trends, business building tips, menu ideas, recipes and also a pub quiz."
The Mymarket website was redesigned in August and brought more advantages. "The new site is incredibly easy to navigate and added bonuses such as the order-saving feature has really helped to make a difference," says John.
Case study: The Goose, Gamston
Dale Moorby, manager of the Goose at Gamston, Nottinghamshire, was one of the first Hardys & Hansons on board with Tradesimple. "It's quicker and saves us paperwork. Everything is done at the touch of a button.
"Implementation was pretty straightforward. David Cook did one-to-one training with us and the system clicked in from day one," he says.
All the Goose's supplies now go through Tradesimple - glassware, disposables and other sundries as well as food and drink - and there are plenty of benefits from Dale's point of view.
"You can put in your order any time, which is handy if you forget something, but we usually do it between 10am to 11am on a Saturday and Sunday now, which is great if you've had a busy Friday night."
Freshnet gets Massive
London-based pub group Massive is the latest operator to sign up to hospitality e-commerce website Freshnet. The three-year deal, concluded after nine months of talks, is expected to reduce the amount of paperwork involved with running Massive's 35 food-led outlets by a staggering 90 per cent and enable the company to acquire new sites without having to take on extra staff.
"The sheer volume of paper invoices per outlet was a significant barrier to growth," says the firm's financial controller Mark Bispham.
Freshnet comprises more than 300 selected suppliers around the country and a competitive price for each product is agreed and fixed on a regular basis, allowing a pub to see exactly how much goods are going to cost when they order.
A comprehensive record of each transaction is stored on the system, which minimises errors, reduces paperwork, improves efficiency and provides data that can be analysed to determine spend patterns, among other things.
Getting what you want
Point-of-sale (PoS) material is playing an increasingly important role in promoting brands and events and boosting sales in pubs. But as the use of PoS has grown, managing it becomes increasingly complicated and the diversity and high turnover of items makes the task even more difficult.
Once again, though, technology has come to the rescue. MDA, a leading UK specialist in PoS management for major brands, has been working on the problem with tenanted pub giant Punch Taverns.
Forming a close partnership with Punch's brand marketing team, MDA created a new PoS management system called PPS which aims to ensure the group's 7,800 outlets get what they want when they want it.
The technology also provides continuous management reporting and analysis so that Punch can tailor its budgets and review its PoS programs on an ongoing basis, keeping them fresh and effective.
MDA has already processed more than 18,000 orders to date. "This was the biggest single project marketing investment Punch has ever undertaken," says PunchTaverns director of marketing