Dynamic Food Procurement
How does it work?

Here we have outlined the key principles that distinguish Dynamic Food Procurement from conventional approaches.

Dynamic Food Procurement
For Food Producers & Suppliers

  1. A Dynamic Purchasing System (DPS) approach is open to all primary producers that meet the standards. Multiple producers per food category can supply in a transparent marketplace.

  2. Producers can tender at any time –not just at contract start and if unsuccessful initially, they can reapply again and again having addressed non-qualifying issues.

  3. Technology makes supplying simple for producers. Ordering and fulfilment process is tailored to individual producer bespoke capabilities. (e.g. Orders placed at date/time of producer’s choosing, order lead times and days of fulfilment can be configured, collections can be made from producer site)

  4. Approved producer invoices are paid within 14 days.

  5. Transparent, retrospective fees (sometimes called listing fees or marketing fees) are not charged to producers by logistics providers. The margin earned by the logistics provider is paid by the customer at the point of purchase.


Dynamic Food Procurement
For Logistics Providers

  1. A Dynamic Purchasing System (DPS) allows multiple Regional Logistics Providers to tender at any time –not just at contract start. If unsuccessful initially, they can reapply again and again once the non-qualifying issues are addressed.

  2. Technology enables regional Logistics Providers to adopt more short supply chains into their category mix -profitably and sustainably.

  3. Regional Logistics Providers can provide food supply chain transparency by managing multiple bespoke online stores for each customer. Provenance and production approach of food is traced from the point of purchase, right through the chain to customer delivery and invoice. As well as traceability, the technology brings rigour to the management of producer ordering and fulfilment, quality control, batch inventory stocking, picking/packing, invoicing/billing and delivery - in one integrated, end-to-end platform.

  4. Logistics Provider invoices are paid within 14 days.

  5. SME Logistics Providers revenue is transparent and fully configurable: (e.g.% markup by food category, producer fulfilment collection and customer delivery charges and customer drop size discounting) –no retrospective listing/marketing fees are charged to producers.


Dynamic Food Procurement
For Procurers and Caterers

  1. A Dynamic Purchasing System (DPS) allows multiple primary producers, secondary suppliers and logistics providers to tender providing an open, transparent and competitive marketplace.

  2. Supply chain transparency allows for informed choices to be made from the social, environmental and economic value generated by each producer and product.

  3. End to end supply chain digitisation enables analysis (from macro level to a granular site or farm level) of procurement performance against financial, environmental, and nutritional measurements.

  4. Multiple supplier invoice consolidation means lower burden and cost of contract financial management. Delivery consolidation equals a lower carbon footprint and improved air quality.

  5. An open marketplace with a level entry for producers, together with supply chain transparency enables food prices to be competitive throughout the contract duration. Listing fees are not charged by the caterer to suppliers.


Dynamic Food Procurement
For Chefs and Cooks

  1. More choice: Dynamic Purchasing Systems (DPS) enable a wider choice of produce from a range of producers and suppliers - all on online stores. Multiple Logistics Providers within a region can enable a choice of service provision.

  2. Technology-enabled, shorter supply chains bring fresher, more inspiring seasonal produce into the kitchen.

  3. Convenience: Online ordering reduces order errors, gives a choice of delivery days and times, as well as consolidating multiple producers/suppliers into a single delivery and invoice.

  4. Value: Open, transparent marketplace of food enables greater competition and better vision of the range of prices available.

  5. Supply chain transparency allows for informed choices at the point of purchase - on animal welfare, climate/biodiversity impact and social/economic factors. This can be communicated to customers to build service popularity, take up and, so, service profitability.

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DPUK Food is supporting the implementation of Dynamic Food Procurement across the UK by coordinating efforts, sharing resources and providing support and guidance.