1. Presented by: Glen Combe Date:20 th January 2009 ‘Beating Food Inflation without compromising quality or brand’ Insight into the role e-procurement can play in keeping costs down without sacrificing brand standards or quality.

2. Who are iTradeNetwork? 2002 Launched in the UK as mymarket.com e-Procurement portal for Foodservice in the UK 2006 Rebranded as Makella 2007 Acquired by Amphire Inc. Global provider of SaaS solutions to the foodservice industry 2008 Acquired barbox.com UK’s leading e-procurement portal for the licensed trade 2008 Merged with ITN $229bn of orders handled every year Worlds largest procurement management systems company within hospitality e-Sourcing e-Procurement Rebate Management Spend Intelligence Reduction of supply chain costs Increased revenue Improved compliance Improved trading partner relationships

4. Category Management Approach to Cost Reduction Range Management Menu Reviews Aggregation Collaboration Dynamic Procurement GP Management Goods receiving Invoice validation Storage & handling Stock & wastage management Meal preparation Performance visibility

5. Situation Analysis - Where are we today?

6. Situation Analysis - Where are we today and in the future?

7. 1.Staff must take 25 percent less wages 2.We must have no guests 3.No casual entertaining, theatres or outings for pleasure; No taxis; Only third class travelling 4.No wines, spirits or cigars 5.Not one single new article of clothing for at least a year 6.No newspapers except The Times and one feminine weekly 7.If any golf, no caddies 8.No Christmas, birthday or wedding presents 9.Rigid economy in food; no soups, entrees, sweets (crystallized fruits, &c.), or fruit, beyond what is thought necessary for health, except from our own garden; only joints, plain puddings, and simplest food 10.Strict economy in coal, gas and electric light. The Times, February 3 rd 1916

8. Supplier Cost Base Re-tender Margin Variable Costs Fixed Costs Incurred by your suppliers when you place a purchase order, e.g. raw materials Does not vary in relation to volume sold, e.g. overheads

9. Case Study Who? Multi brand client with annual food spend of £6m Mixed skill levels across the operating units Why? Reduce food costs and the cost of purchasing service provision Improve visibility Straightforward ROI model Improve consistency of brand standard implementation What? Change in purchasing service provider Acceptance of change Mitigation of 11.36% inflation GP Improvement of 0.97% on food purchases, total saving of £568k per annum Service fee saving over £150k per annum Improved communication, training and operational support to units and more consistent delivery of brand standards

10. How is the £718k pa made up?

11. By taking positive action one operator has managed to avoid the impact of rising food costs being felt so widely across the industry. What is stopping you from doing the same? Absolutely nothing!

12. Thank you!