Massive, the privately owned pub and pub-restaurant group, were looking for a solution to reduce the huge amount of paperwork involved with running their 42 outlets.
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- Introduction
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The accounts department were being swamped with invoices to reconcile and it was beginning to inhibit the future growth of the company. Massive enlisted the help of Freshnet Systems Ltd and have now cut the number of invoices for processing by a staggering 90% per annum.
The sheer volume of paper invoices per outlet was a significant barrier to growth
...commented Massive's Financial Controller, Mark Bispham.
- The Massive Group
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Formed in 1993, and with a £27m turnover, The Massive Group own 38 premises in and around London plus 4 on the south coast. These are organized into five main groups, which range from traditional pubs to French restaurants, and from gastro pubs to rugby pubs and family BBQ your own food restaurants.
Fresh food is served in 35 of these outlets, which was amounting to somewhere between 1000 and 1500 invoices per week. Head office had the task of processing these invoices, tracking down those that went missing, reconciling credit notes and tallying statements, all of which involved a considerable amount of man- hours. The Freshnet system has had a significant impact on the purchasing process enabling Massive to continue to expand and its accounts team to spend its time more effectively. Mark Bispham said:
A full audit trail remains for every transaction, which has improved the nature of purchase ledger from process to control.
- The Freshnet System
- The Freshnet system is an online trading hub for the catering and hospitality industries, which improves efficiency, reduces paperwork, minimizes errors, lists the price for all items, and provides data, which can be analysed for spend patterns. The customer places an order on line, which is then processed by the supplier, delivered, and an invoice electronically produced.
The Freshnet system comprises a network of some 300 carefully selected suppliers from up and down the country. The catalogue of products and prices is managed and maintained by Freshnet, and fixed, capped or variable prices are set for fresh produce on a regular basis, allowing complete price transparency.
As a result of their close interaction with the suppliers, combined with years of experience, Freshnet is able to alert clients to shortages or high yields of certain produce, so that they can adapt their menus accordingly.
Clients can bring their own suppliers to the network as well as use those already on the system. Individual pubs or restaurants are still able to use local producers who are only able to supply their outlet.
- Traffic Light System
- The traffic light system is a colour coded progression of the order: when the client places their order it is in the red zone, it moves to amber once it has been viewed by the supplier, and green once it has been delivered.
During these stages the order can be amended to allow for mistakes, shortages of certain produce and any spoilt items upon receipt. The client has three days in which to confirm their approval of the order before it is dispatched to the invoicing pool.
- Efficiency/Reduces Paperwork
- An electronic data trail reduces the amount of paperwork involved, it minimizes misunderstandings, and keeps a clear history for each transaction. Amendments can be made along the way, which reduces the number of credit notes that might have to be issued, which can involve a lengthy process to reconcile. Invoices are raised per consignment, but an automatic accrual means that statements can be issued just once a month.
In the past the accounts department were involved in a major monthly reconciliation, but an automatic accrual means that this is no longer the case,
Mark Bispham reflected.
- Data Analysis
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The electronic data enables the client to analyse spend patterns eg. how much is spent on items such as fish or meat, seasonal variations etc. The company has greater control over costs because prices are transparent.
- Training
- Introducing online ordering into the daily routine of the kitchen can be quite a cultural shock, but once mastered the benefits far outweigh that initial learning curve. The system is easy to use because it has been designed and developed with the end user in mind.
Freshnet trained up Massive's managers and chefs over a 7-week period, and provide a 24-hour telephone help line.
- Conclusion
- The whole process from the initial meeting through to the actual system going live took place within a nine month period. "We have been delighted with the responsiveness of Freshnet, their flexibility and the dedicated level of support", Mark Bispham remarked.
- L Jalley & Co
- Established 60 years ago, L Jalley supply a vast array of fruit and vegetables and dairy produce, alongside a full delicatessen range to hotels, restaurants, gastro pubs and contract caterers. Based in the UK's premier fresh produce market at Covent Garden, they distribute to the South East corner of the UK and to Bristol and the West country.
L Jalley has worked with Freshnet for 2 years now, and as a result of being part of the network has seen its business increase by 12-15%. Freshnet bring suppliers together, but allow them to interact with the clients directly. The contract is reviewed on an annual basis, but customer services teams communicate on a regular basis to address any concerns or issues.
L Jalley's Managing Director, Peter Pini, is a big fan of the Freshnet system:
It is easy to use, efficient, keeps errors to a minimum, reduces paperwork and man hours to process orders, and the history for each transaction is electronically logged making it a clear and transparent system.
Mr Pini believes that the industry is changing and that there is greater demand for fresh produce. Clients are looking at smaller, local and regional suppliers instead of one single national distributor. Mr Pini says:
Freshnet have put together an excellent network of specialist suppliers working to a fixed price.
November 2005
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