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Industry Insights Published 2023-12-19

Getting Food Ingredient Procurement Right

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For restaurants and institutional caterers (group meal service providers) alike, efficient procurement starts with a working knowledge of Taiwan's ingredient supply chain. The range of categories is wide - from fresh produce to prepared ingredients, spanning vegetables, fruit, meat, seafood, dairy, grains and dry goods - and each ingredient brings its own texture, flavor and functional value. Operators should therefore match ingredient sources and quality grades to their own menu design and customer preferences, so the finished dishes land well with diners.

The next step is a supply chain management system covering purchasing and prep across that chain. A supply chain management system spans the full set of activities linking raw material suppliers to the end consumer: market research on ingredients, supplier evaluation and selection, order processing and delivery tracking. Done well, it lowers cost, improves efficiency and quality, and reduces both waste and risk. In practice, focus on the following areas:

  • Ingredient research: before buying, survey what is available on the market and at what price, and how demand shifts by region and season. This informs both menu design and cost budgeting.
  • Cost control: without compromising product quality or taste, hold down spending on raw materials, packaging and equipment - through supplier discounts, or by saving space and time.
  • Ingredient selection: once evaluation is complete, decide which sources to commit to. This is the basis for long-term, stable supplier relationships.
  • Efficiency gains: without adding labor or time cost, improve the speed and accuracy with which raw materials, packaging and equipment move - for example by using automation or smart technology to cut errors and delays.
  • Added value: without losing competitiveness or appeal, build additional value or differentiation into raw materials, packaging and equipment - using creativity or distinctive features to shape a unique dish or service.

Restaurants in particular are still dealing with post-pandemic shortages of raw materials, packaging and equipment, along with overloaded logistics capacity. Those pressures have reshaped supply chain structures, and operators need to rethink how they adapt to market demand and competition. Four further moves are worth considering:

  • Track and analyze production traceability records to get an accurate read on ingredient freshness and quality, and build long-term relationships with raw material suppliers.
  • Survey and compare the market, selecting ingredients that meet both specification and cost-effectiveness requirements, while checking each supplier's capacity and service quality.
  • Analyze and plan for the takeaway and delivery market: understand current consumer demand and preferences, and choose delivery platforms and logistics partners that can deliver quickly and safely.
  • Set a strategy for product transformation and innovation, developing new products or service models that fit market demand and consumer taste - prepared foods or fresh ingredient boxes, for example.