Case study · Hospitality

A hospitality business found the margin its suppliers were taking.

A hospitality business buying from a long list of suppliers. Sales were well understood. The cost of each product was a number set years ago.

Growth reviews · Connected systems · 3 min read
+6.7%increase in profit margin, found in its own invoicesBetter buying 3–7% · produce rises 24–36%

01The leak

Every price rise hid inside a bigger invoice.

Dozens of supplier prices had moved a little at a time. The accounts showed totals by supplier, not by item, and some inputs bought in small amounts didn’t show up anywhere as a line.

02The fix

A price book from the invoices already in the inbox.

No new software for staff and no extra data entry: the work came from records the business already had.

  • Every invoice read into rows item, pack size, unit price and date, so each input has a price history.
  • Pack sizes made comparable per kilo or per unit, across every supplier.
  • Each product costed from its recipe and packaging, next to its selling price.

03Now

Margin, product by product, as invoices arrive.

The owner now sees cost and margin for every product, updated as new invoices land. A handful of products were carrying far thinner margins than anyone thought, and a few supplier categories had clear savings. The margin is found; reprice, reformulate or change supplier is the owner’s call.

From the business’s own invoices, recipes and sales, in a costing review. Margin found, not yet banked.

The detail, in our field notes

Next case study · Our own workFixes built in days, not months1.5M+ lines of code shipped a month, one operator directing
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