The bakery software company has formed an alliance with Birmingham-based food industry procurement specialist Parallel Purchasing, according to a press release. Under the terms of the agreement, the two companies will now work together on procurement cost-saving projects for clients in the baking sector. Parallel Purchasing will also now use Cybake as its primary procurement software application for independent craft bakeries.
Parallel Purchasing started last year and was founded by MD Matthew Armitage. He says: “By Cybake and Parallel working together, we can have a tremendous impact on any bakery business due to the combination of our systems and purchasing expertise.” Armitage added that “Both our companies like to emphasize that, although this might sound slightly counter-intuitive, an extra pound in sales is worth much less than a pound saved. Of course, gaining additional sales is always the priority, but once ingredients, energy, and labor costs are considered, an extra pound in sales is unlikely to add more than 20p to your bottom line. In contrast, all of each pound saved goes directly on your bottom line – and yet purchasing in many cases is not given sufficient attention by bakeries.”
Commenting on the new partnership, Jane Tyler, managing director of Cybake, says: “In a side of the baking sector that can sometimes seem filled with smoke and mirrors, we like Parallel Purchasing’s commitment to transparency and integrity. Trust is a big issue, especially in the food ingredients supply chain, and we believe Parallel provides commercial bakers with a win-win approach.”
Armitage says that the benefits of using Cybake include guaranteeing that the business is paying the correct prices agreed with their supplier and ensuring it is claiming credits for short delivered or damaged stock. Similarly, as around 5% of supplier invoices require some form of credit, Cybake makes sure any discrepancies are flagged up, so the baker is getting other credits they are due.
Other benefits include: keeping ingredient cost prices, and hence margins, in bakers’ recipes up to date, always using the last price paid to their suppliers, integration with accountancy software (Sage, QuickBooks, Xero, etc) to avoid the need for double entry of purchase invoices, and the maintenance of ingredient-cost price history to allow bakeries to work out the effect of cost price changes on margins over time.