In the past businesses have turned to outsourcing to gain assistance with controlling costs and managing operations tasks. Over recent years, outsourcing has begun to receive negative connotations due to the idea that control is given up once the decision to outsource is made.

However, a new trend is emerging in the hospitality and food service industries that allows owners and operators to remain in control while still being able to minimize cost risks and increase product and service consistency, which is co-sourcing.

By definition, the term co-sourcing is a business practice where a service is performed by a staff from inside an organization and also by an external service provider. Co-sourcing, unlike outsourcing, doesn’t involve simply handing work off to a third party. Instead, co-sourcing is teaming up with an external service provider to make food and beverage purchasing operations tasks easier, more efficient and cost-effective.

For instance, co-sourcing may involve supplementing the internal purchasing staff with a specialized skill, such as order entry program implementation services, which provides centralized standardization across the purchasing platform. Doing so would help in-house and culinary departments to ensure menu consistency and optimized cost effectiveness for the field operators.

“Part of our co-sourcing design is to have the management staff in a quarterback position,” says Scott Hoffmire, president of Source 1 Purchasing. “Management is on the front lines and expressing their needs, challenges and expectations to us, which allows us to help them navigate and get the best product fit with optimal pricing.”

Co-sourcing allows for a procurement specialist to harness the entire supply chain in order to meet specified needs, while allowing owners and operators to remain in control of the decisions. Unlike outsourcing purchasing, which can be seen as surrendering, the co-sourcing formula works in that it keeps the buying power in the hands of the owner or operator.

In addition to helping owners and operators meet sourcing and procurement needs, co-sourcing helps to protect the brand’s promise and reputation. “On top of procurement management, owners and operators are also in charge of guest experience, the overarching theme and various promotions,” says Hoffmire. “Since we are operators serving operators, we are able to offer industry know-how and the ability to maintain a brand’s reputation through co-sourcing, which can take the powerless to powerful.”

For more on Source 1 Purchasing’s strategic procurement solutions, contact us today at 901.334.4000.

2400 High Ridge Road, Ste. 100
Boynton Beach, FL 33426
888.411.9987

51 Germantown Court, Ste. 201
Cordova, TN 38018
877.717.5566

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