Background
Our client – Mike Naworynsky OBE, Director of Operations – is responsible for non-academic operations within the College, including the provision of appropriate facilities services to pupils, staff and stakeholders of the College.
Mike took up his post in September 2022. He identified that the in- house catering department needed support to modernise its approach, particularly in relation to the annual procurement of £1.4m of food and catering supplies. Having previously worked with Litmus, he wanted us to help him understand the options available to increase efficiency and eliminate non-value effort by implementing fit for purpose systems, comply with legislation and achieve better value while consistently improving product quality.
Litmus was engaged in January 2023.
Brief
To temporarily embed our teams to enable the forensic assessment of every business process involved in the provision of food services across the College estate. In summary, we undertook the following tasks.
– Review the current set-up and identify options for change
– Determine how best to support the respected in-house catering team by establishing an appropriate supply chain and robust technology to modernise the operational approach
– Ensure that existing catering management were fully involved in the evaluation of options
– Improve the variety and quality of food procured whilst eliminating unnecessary costs
– Support local food suppliers to adapt so that they can continue to supply the College
– Improve data collection and reporting at all levels
– Introduce procedures to ensure that all non-food items and services are procured effectively
– Ensure that all health and safety legislation is consistently complied with
– Eliminate legacy paper systems and reduce account activities
– Eliminate repetitive non-value-added activities
– Remove cost from administrative practices and improve quality
– Complement the College’s sustainability and net zero carbon ambitions
Approach
After agreeing the project brief with the College’s senior management, we held focus groups with catering management and senior chefs to understand what they wanted to change, when and why. The process included understanding what current suppliers provided, who was considered important to retain and the level of support provided. We informed the team of what was available from the wider catering supply chain and provided examples of best practice being delivered elsewhere in similar establishments. We then analysed their current processes and mapped what was happening, who in the College was involved and how data was being recorded and acted upon. We identified the key changes that needed to be made and the benefits that would be achieved if they were implemented effectively. We benchmarked current pricing to identify where costs could be saved without compromising quality, and where supplier diversity, variety and flexibility could be improved. We engaged with existing local suppliers to determine their reaction to the proposed changes and their ability to comply. A preferred solution was identified and discussed with catering management. A subsequent report was produced and presented to the College’s management containing our recommendation along with supporting evidence, implementation costs, net saving values, a timetable for implementation and the projected benefits of its adoption.
Outcomes
The College accepted our recommendations in full and engaged us to support the catering team to implement them. The changes involved were introduced within 3 months and ahead of the new 23/24 academic year to provide an 8-week gap to bed down new processes and system usage. The catering team fully supported the changes.
– A fully funded procure to pay system was installed
– The number of suppliers used was reduced by 20%
– Suppliers moved to a controlled pricing approach
– System driven checking reduced supplier invoicing errors and over supply
– Key local suppliers were retained
– All ordering and payment data was managed digitally removing 1000’s of paper transactions and unnecessary interventions
– Internal transfers and consumption allocation became system driven
– Orders placed were valued at the outset supporting budgetary management
– Food cost reduced by circa 8%
– Stock was managed efficiently, and waste was reduced
– New products and produce were introduced to enhance College community menus and increase consumer satisfaction
