Why Purchasing Best Practices Matter

• Purchasing = the foundation of profitability (buying right to sell profitably).

• Key reasons to standardize SOPs:

  • Ensure consistency and compliance.

  • Enable real-time monitoring & adjustments.

  • Reduce risk of over/under ordering.

  • Support better vendor relationships & negotiations.

  • Improve customer satisfaction by preventing stock-outs.

  • Tie inventory control to purchasing for accuracy.

  • Use data to make strategic, informed decisions.
    
    

Managing Vendors & Items

• Maintain vendor records, product numbers, and substitutes.

• Use the Vendor Editor in Yellow Dog to track all item variations (brands, sizes, substitutions).

• Importance of consistent item creation:

  • Use naming conventions (uppercase, proper case, or item type prefixes like “BEER – Lager”).

  • Prevent duplication and confusion.

• Control permissions: not everyone should create items or purchase orders.

 Retriever Tool for Invoicing

• Retriever automates invoice entry:

  • Scan or upload invoices, Yellow Dog matches items.

  • Handles substitutions & size differences.

  • Creates new items directly from invoices.

• Eliminates manual entry of invoices and items.

• Strongly recommended for all customers: saves time, reduces errors, and improves efficiency.

Monitoring Costs & Vendor Pricing

• Keep pricing updated weekly during invoicing.

• Use saved reports for visibility:

  • 682: Invoice price change from prior invoice.

  • 593: Vendor price changes over 4 months.

• Threshold warnings (e.g., >15% price change alerts).

• Identify seasonal trends in costs.

• Use order desk worksheet to:

  • Compare vendor prices.

  • Consolidate orders across vendors.

  • Automate selection based on best price/contracted terms.

 Reporting & Data Usage

• Saved reports (purchasing, invoice, vendor, cogs).

• COGS Module:

  • Tracks purchasing, waste, adjustments, and usage.

  • Gives actual food/beverage cost percentages without requiring recipes.

• Key benchmarks: ~30% cost percentage, varies by product type.

• Comparison reports:

  • PO vs Invoice vs Usage.

  • Helps spot over-ordering, under-ordering, or waste.

Efficiency Tools

• Item Lists & Order Guides: reusable, standard order templates.

• Mobile Tools (YD Mobile & Count Excel):

  • Create requests, scan invoices, count items, receive orders.

  • Supports on-the-go efficiency with barcode scanning.

• Par Levels & Max Capacity:

  • Automate reordering to ideal stock levels.

  • Seasonal or event-based adjustments possible.

Receiving & Documentation

• Formalized receiving process: everyone should know their role.

• All product must be received & committed into Yellow Dog.

• Saved report 683: Open/uncommitted invoices.

• Compare POs, vendor confirmations, and invoices for accuracy.

• Report shortages, overages, damaged items immediately.

Fraud Controls & Permissions

• Limit who can create/edit vendors, items, or pricing.

• Monitor for duplicate/unapproved purchases.

• Regularly review vendor performance (pricing, delivery, substitutions).

• Analyze freight/shipping charges and renegotiate terms.

 Integration with Accounting

• Align GL accounts and COGS departments with items.

• Bulk-assign via inventory levels.

• Ensures correct financial reporting when pushing data to accounting systems.

Communication & Continuous Improvement

• Align departments (purchasing, store managers, F&B directors, finance).

• Set clear expectations for timing, budgets, and procedures.

• Encourage feedback and regular reviews of processes.

• Use Yellow Dog’s knowledge base, success team, and free monthly training hours to improve.

Big Takeaway: