Top costly inefficiencies a group purchasing organization can help you solve

August 4th, 2026

Expert roundtable featuring Barb Mulckhuyse, VP of Digital Sales

“Streamline operations (without sacrificing the guest experience).” As the cost of everything rises and consumer habits change, this goal is at the top of every operator’s to-do list. But here’s the catch: your team is short on time…and very busy. Maybe busier than they’ve ever been before. On top of that, many operators are working with fewer resources. So, how exactly do you reduce costs when it feels like you’re stuck between a rock and a hard place?

In a word: precision. At our latest webinar, Do More With Less, our panel of digital, culinary and supply management experts dug into how operational efficiency can give you the flexibility you need for optimal business performance.

Watch the on-demand webinar and read on to learn about the hidden inefficiencies quietly draining your margins — and what you can do to stay ahead.

What are some examples of small inefficiencies that quietly turn into huge margin drains over time?

Lynn Hay, Head of Culinary: I think there’s a misconception that it has to be a single expense that’s eroding margins. At Entegra Culinary Consulting, we see it every day with untracked ingredient usage, expired produce, menu items that too long to prepare — there are a lot of little things that add up to big problems.

Operators who understand this are constantly looking for ways to simplify. They’re cross-utilizing products, learning buying habits to avoid over-purchasing and standardizing recipes to make sure every product has a purpose. That’s really where culinary consulting through a group purchasing organization shines. Finding the right culinary partner can help you bridge that gap and stop that margin leak.

Procurement complexity is a huge time and cost drain. What are the first steps operators can take to simplify what they buy?

Barb Mulckhuyse, VP of Digital Sales: Start by getting all purchasing done in one place, with one system. A lot of operators still use a mix of many different websites and spreadsheets in a complicated, manual process, and that makes it really hard to see what is happening across the business. It also creates lots of room for duplication.

When you have one centralized data and digital system, like a procure-to-pay system such as EPRO, powered by Entegra, it provides an opportunity to simplify. Your Purchasing team goes to one place for all of your orders. From a budgetary perspective, it helps you understand how much you have left in a budget to spend on a category or location. It also automatically sends over that information to your accounting system so you don’t have to worry about processing the invoices, either.

Procurement doesn’t have to be complicated. Having the right system makes it easy to place all your orders, see all of your vendors, track all of your spend and understand what you’re really spending your money on to make sure it’s on par with your budget.

What’s the biggest time leak in operations that rarely shows up on a P&L?

Jeffrey Simmons, VP of Hospitality Supply Management: With labor shortages, cost pressures and guest expectations elevated, it becomes really important to pressure-test your business and understand how it runs on a day-to-day basis.

Inefficiency is definitely the enemy of productivity. Here’s how to spot it:

Reactive scheduling: When you inaccurately anticipate demand, it can create over- or under-staffing situations that result in lower guest satisfaction and a discontented staff that’s challenging to retain.
Poor internal communication: When internal teams don’t communicate well, it results in misaligned expectations. Whether it’s a room turnover or a guest’s order or even preventative maintenance, poor communication means your team is spending more time figuring out what they should be doing and less time on getting things done.
Weak suppliers: I work with suppliers every day, so I can confidently say: poor-performing suppliers will result in not having the right product that you need for guests at the right time. That could look like discontinued items on your menu or the wrong shampoo and towels in a hotel bathroom.
Disjointed ordering process: As Barb mentioned, when your procurement process is fragmented, it creates unnecessary complexity as well as a frustrated team. But when you can optimize operations, it creates a more seamless service flow and that ability to claw back time and efficiency means you have a more engaged team who can offer guests a better experience, which drives repeat customers.

With labor costs at record highs, how can operators use data and technology to improve efficiency and reduce costs without sacrificing the guest experience?

Mulckhuyse: Technology can help with almost everything we’ve discussed. For example, AI is helping us automate many manual tasks — but that’s jumping from Step A to Step Z.

How can technology help operators save time?

Mulckhuyse: Before jumping to AI, there are a lot of steps we can take to streamline things. Whether it’s using technology to help with recipe costing, par levels or inventory control. It can all be done by most recipe management systems.

To take it one step further, there are food production systems that can manage basic recipe and menu creation.

And then all the way at Step Z — the cherry on top — you can use AI-powered technology to analyze the needs of your customer base and your recipes, then generate a two- to four-week cycle or limited-time offers that keep your customers coming back for more.

Is AI a replacement for expert team members?

Mulckhuyse: AI certainly doesn’t replace the expertise of culinarians or operators. Instead, it gives those experts their time back, relieving them of the very manual task of building the “first draft” of a menu cycle. At the end of the day, the culinary expert still is always in the driver’s seat. They have the ability to review, perfect and approve that menu before it goes live.

Bringing AI into the equation can also help you automate scheduling, meaning you have the right people at the right time to support your menus. Whether you’re using tech every day or just getting started, automating manual tasks gives you time back to focus on your customers.

What’s something people under-value when it comes to reducing labor costs?

Simmons: I highly recommend cross-training. When your team members can work in multiple departments, it’s a game-changer for your operation. It’s worth the investment. Whether it’s in the kitchen, front-of-house or in another area where there’s a need, having a versatile staff means you can fill gaps on the fly.

It’s good to have a plan, and technology can certainly help make that more efficient. Cross-training helps when things don’t quite go according to plan.

There are so many technology solutions. How do you choose the right one?

Mulckhuyse: You’re right that there are a lot of solutions. I’ve seen this first-hand, attending conferences where there are 300+ vendors, all with tech solutions that could make your life easier. There are so many options that it can be hard to determine what’s worth your time and what makes sense for your business.

This is where a group purchasing organization (GPO) can help. In my role in particular, I help you identify your primary business challenges and match you with the right technology for your needs. My team takes the time to vet the tech for you, helping you get the savings you need and the time you want to spend with your customers (instead of spending your time at the office).

How to reduce costs with efficient, centralized tools

When you have the data to plan ahead, purchasing for your business is simple. But if that data is scattered across multiple, unintegrated systems, your team might be forced into a manual ordering process that leaves ample room for error. Sometimes, this results in your team relying on quick trips to the local store. The problem is, those last-minute retail products they purchase typically cost more and don’t align with your brand standards. And when this is a recurring issue, you have a major margin leak on your hands.

What causes a costly, disjointed ordering process like this? Typically, fragmented technology is the culprit. But with centralized data from integrated digital tools, your team has a simpler process that’s more accurate and less labor-intensive.
By tapping into data-powered digital tools for analytics, auditing, reporting and e-procurement (like the Entegra PurchasingIQ platform), you can make more informed purchasing decisions to overcome today’s procurement challenges — and thrive.

Find the right tools for your business and start making purchasing decisions with confidence.

Frequently asked questions

What is a GPO, and how can it help my business? 

When you partner with a GPO, you join other buyers in leveraging your collective purchasing power — in Entegra’s case, totaling over $50 billion globally. That purchasing power enables your business to access better prices and a broader selection of high-quality items, services and support than would typically be accessible to an individual business.

What is Entegra? 

Entegra operates the world’s largest and most resilient supply chain, empowering your business to tap into $50 billion in purchasing power worldwide. A world leader in hospitality procurement, Entegra's client teams deeply understand your industry, providing you the expertise, availability and transparency your business deserves.

Are there any costs or requirements for working with Entegra?

No! Entegra supports clients of all sizes and industries, with no membership fees or purchasing minimums required. In other words, you don’t need to pay us to purchase from any of our 2700+ contracted suppliers. When you’re ready to start saving up to 30%, access deeper discounts and secure a stable supplier network, getting started with Entegra is a simple three-step process.

What types of products and services does Entegra offer that other GPOs don't? 

Entegra helps you save on everything, including:

Food and beverage
Supplies
Furniture, fixtures and equipment (FF&E)
Capital equipment
Smallwares
Maintenance, repair and operations (MRO)
And more!

We put your business’s performance first. That means that in addition to helping you save money and improve margins on the items you purchase, our experts deliver a range of services to improve your business.

We provide expertise in a wide range of operational services to help you achieve your corporate social responsibility (CSR) goals, meet energy efficiency targets, minimize food waste and more.

You can also access a variety of data services, insights and reports for tracking and strengthening your business performance — all backed by the global purchasing power and culinary expertise of our parent company, Sodexo.

In short, we never profit from any relationship until you see value first. 

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