E-Pub: E-ordering takes off
Sometimes it takes a while for industry to catch up with the technology that's been created for it - and that's certainly the case with e-purchasing in the pub industry. A few years ago you could have had a dazzling choice of e-commerce websites to sign up to and order your supplies online. But few were interested at the time and most sites collapsed leaving a handful of patient players who knew their time would come.
And come it has. A few weeks ago Your Business reported on the relaunch of Barbox, the site for independent licensees which has seen interest and use grow steadily. Freshnet, which targets managed pub groups with a focus on food, has been adding to its client list over the past year or so - among them Massive, as reported in Pub Food this week.
But it's Alternative Business Solutions (ABS) that has seen the most sudden burst of interest. It introduced its Trade Simple system into the Hardys & Hansons (H&H) managed estate a couple of years ago. But it's only recently that it's really taken off.
Wolverhampton & Dudley Breweries (WDB) is rolling out e-ordering with Trade Simple this month across its 450 Pathfinder managed houses, Laurel has asked ABS to extend its electronic invoicing to a full purchase-to-pay system for its 420 pubs, and Novus Leisure, the Tiger Tiger bar operator formerly known as Chorion, has also started working with the company.
Obviously, there are hopes that Greene King's takeover of H&H could mean a foot in the door of another major chain.
"It has taken a long time, but pubcos can now see what the business benefits are in terms of controlling purchasing and costs," says ABS director Tony Wright. "We have reached a tipping point where they now believe that this technology can deliver."
The whole idea of doing it online is less intimidating than it used to be, too. "People are changing their buying behaviours and we are finding less and less resistance from pub managers. In fact, they are finding that the flexibility e-ordering gives them is a real winner. Training requirements are dipping, too, because people are used to buying online."
The introduction of Trade Simple into Pathfinder follows a successful pilot in 10 of the houses and will kick off with non-food supplier King UK followed by food suppliers. Subsequent phases of the project will include automated invoice management.
According to Tony, WDB's aim is to control purchasing by pub managers to get the best out of centrally agreed rebates while also improving service to the pubs. "E-ordering allows managers to place orders when they want to rather than waiting for the in-bound telesales call from the supplier," he explains. "One of the changes we see with e-ordering is that managers start placing orders in the early hours or first thing in the morning before opening."
The project is expected to be fully rolled out by September.
At Laurel ABS has provided the company with an electronic invoice management solution for the last three years. It views the addition of e-ordering as key to supporting the branding at its pubs and maximising newly-negotiated contracts.
"We see the benefits in moving to online ordering as ensuring that each bar has the correct stocking policy for food and drink, bringing an end to invoice matching and payments and gaining clarity on margins," says purchasing director Caroline Craik.
BarBucks rewards claimed
The relaunch of Barbox seems to have got off to a flying start with its 12,500 subscribers already claiming more than £100,000-worth of "BarBucks" from its new reward scheme.
Online registrations in the first month, including former users coming back to the site, were treble that of a typical month and in early feedback from licensees has also been positive.
