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Serious meetings in bars. part II


Peru is a friend of Marbella was already head chef when I was still a pipiolo. They were very cool years and the truth is that we gave many services together. After the events we liked to stay a while (sometimes did the many) Commenting on the move. In this parenthesis during which we licenciábamos called him "out cup".

Both we had clear that someday we would our own business. Currently he owns a spectacular restaurant in San Pedro de Alcantara, directs a lab R & D show-cooking and advises I do not know what Business / s.

We liked to talk about everything but we agreed on something always, He was talking about management. Go buzzed couple, after the palizón which involved carrying out the service, we rolled us all the things he had to do to optimize a catering establishment.

We knew that a fundamental parameter to consider was part shopping / warehouse / suppliers ....

The important reflection we did was the following:

Purchases act directly on the economic and financial situation of the company, to the extent that influence the behavior of three variables:

  1. He cost materials
  2. The financing from providers
  3. The investment materials needed in stock

1.- The cost of materials

Usually by a reduction in the cost of purchases, pat and a little more, It is as if we did not give all the importance it deserves. However an increase in sales; it is for everyone a great achievement and business success.

But, should remember that If we sell 1 € more, we won 0,15 from 0,20 € (It depends on our operating profit), but if we save 1 €, just won 1 €.

2.- Vendor financing

Always interested in increasing the average payment period to suppliers free and permanent. To get it It means improving the liquidity of the company; bank financing is replaced, costly, by vendor financing.

For example; a restaurant to buy about 30,000 € per month = 360.000 € per year, and has an average payment period 30 days, have a permanent funding providers:

360.000 / 365 x 30 = 29.589€

If payment would increase 60 days ( without recharged, Of course) funding would:

360.000 / 365 x 60 = 59.178€

Which could reduce, for example, bank debt, if any, at 29,589 €, what also amount to a financial savings from 1.479 € if the cost of money is the 5%. Or it could make investments amounting to 29,589 € (30 days) one of 59 178 € (60 days) without having to borrow from the bank.

this funding, as we see, It constitutes a permanent source for the company, because the bills that are paying at maturity are replaced by new purchases made. In this way, the company maintains a level of permanent debt with suppliers. Although eye:

  • The amount is variable depending on demand in each season.
  • Is a practice that should only perform if we are in a more or less consolidated company and that historically is meeting their sales budgets and shopping.

3.- Inventory investment:

Reducing stock levels, without neglecting the needs of the productive process (minimum needed to sell), we increase the turnover rate of stock. Rotation is the relation enters purchasing and inventory investment.

We know that maintaining inventories in warehouses, and other costs; storage, of control, of distribution, etc… also causes financial expenses for which we have a few initial resources to help us support this investment.

If we are able to improve the rotation, no other consequences such as running out of product to sell, We need less funding, less money to spend on obtaining stocks.

An example:

A restaurant that consume 360.000 € / year and maintain a turnover rate 6, an investment of:

360.000 / 6 = 60.000 € permanent standing there!!!!!

If the turnover rate increases 7, investment in stocks would be reduced to:

360.000 / 7 = 51.428€.

This is 8,571 € less. And if this money we have funded with bank (al 5%) we would save 428 € more.

But also, It has another effect on profitability since the relationship between investment and profit, increases.

How does this turnover rate is calculated?

materials consumption ( *No + shopping – *If) / Stocks of materials

*Ei being: initial existence

*being Ef: Final existence


A restaurant consumes 12,000 € and takes stock worth 1,000 € its turnover rate is:

12.000 / 1.000 = 12

The turnover rate expresses the number of times consumed per year (More ...) the stock. From an economic point of view is concerned that this ratio as high as possible without allowing it to produce ruptures of stock.

Seen as getting the turnover rate, we could use other indicators also very precise management for, for example, know the funding from our suppliers; that is to say, As our stock we fund providers.

We would first have to find out:

Average payment period (PMP) = Debts to suppliers / average daily pay

This will mean the money actually disbursed 30 days (1 my) and calculating:

actual payments, made in the month / 30 days

The average payment period (PMP) indicates the average credit from suppliers expressed in days. It interested to be the greatest possible.

With the turnover rate (AND) and the average payment period (PMP) we could calculate the funding from our suppliers in a more precise:

PMP x IR x 100 / 365

An example; We have a restaurant that we know,

  • Monthly purchases: 48.666€
  • monthly consumption: 41.666€
  • Stock final: 8.000€ (initial existence: 1.000€)
  • Payments made in the month: 22.000€

IR = consumption / stocks = 41.666 / 800 = 5.20

PMP = Debts to suppliers / Average daily payment = 48.666 / 22.000÷30 = 66,26 days

Vendor financing (% stock funded by suppliers):

PMR = IR x x 100 / 365 = 66,36 x 5,20 x 100 / 365 = 94,54

The other day I was talking to him, in relation to the presentation of a book, I was almost about to go down to Marbella, I really wanted to see. He gave me permission to share with all our "intimacies and secrets", I said he was with another project ...

Peru is a crack this.

Serious meetings in bars. part II
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About the Author

Nicolas Ayela

I studied law but I was more alternative music. Bares, pubs and occasional disco afterwards decided to study Hospitality. Training, training, training and many, many, many hours. Today I can easily get up to go to work. I am privileged.



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