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Topic · 8 guides

Suppliers & purchasing

Invoice audits, price creep, vendor comparison, and what to do when your distributor raises mid-contract.

Guides in this topic

Terms these guides define

Substitution cost
The cost consequence of swapping one ingredient for another — including the yield and labour differences the price tag doesn't show.
Butcher's test
A measured breakdown of a purchased cut, assigning its cost to the main cut and usable by-products.
CPI: food away from home
The Consumer Price Index for what diners pay at restaurants and other foodservice — the national measure of menu price inflation.
Commodity index
A tracked measure of what a food commodity costs nationally — the benchmark that separates a market move from a vendor move.
Pack size
How a product is packaged — units per case and size per unit. Changes to it are price changes in disguise.
Case price vs. unit price
Case price is the cost of a whole package; unit price divides that cost by its total weight, volume or item count.
Seasonality index
A month-by-month multiplier describing how an ingredient's price or a restaurant's volume moves through the year.
Edible portion vs. as-purchased
As purchased (AP) describes food in the form you buy it; edible portion (EP) describes the usable amount after a specified preparation step.
Catch weight
Items priced by actual weight rather than by a fixed case quantity — most proteins and cheeses.
Bid sheet
A side-by-side comparison of the same items across suppliers, normalised to a comparable unit price.
Invoice reconciliation
Checking that what you ordered, what arrived, and what you were billed are the same three things.
Price creep
Small, frequent supplier price increases that individually look ignorable and collectively remove several points of margin a year.
Credit memo
A supplier document reducing what you owe — for a short, damaged, or wrongly-priced delivery.