--- title: "Digital livestock procurement: driving supply chain cost efficiency" description: Organisations that invest in procurement solutions can see an ROI of up to 25%. Learn how Foods Connected’s Livestock Procurement Solution saves costs. image: https://blog.foodsconnected.com/hubfs/Blog%20Imagery%20(PI%20AUTOMATED)/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg --- [CAREERS](https://www-dev.foodsconnected.com/careers/) [REGISTER](https://app.foodsconnected.com/Register.aspx) [YOUR ACCOUNT](https://app.foodsconnected.com/idsrv/login?ReturnUrl=%2Fidsrv%2Fconnect%2Fauthorize%3Fredirect_uri%3Dhttps%253A%252F%252Fapp.foodsconnected.com%252FLoginRedirect.aspx%26client_id%3Dcore%26response_type%3Dcode%26scope%3Dcore%2520connected_api%2520offline_access%2520analytics_manager%26code_challenge_method%3DS256%26code_challenge%3Dy6zXsYnI20T4Zzc_s7HmDAt7OlhL2zujgcEkoUtd7sA%26state%3Dwomypx52%26prompt%3D) [![fc-logo](https://blog.foodsconnected.com/hubfs/Support%20site/fc-logo.svg "fc-logo")](http://foodsconnected.com) - [Our Solutions](https://www.foodsconnected.com/solutions/) - [Food Compliance Software](https://www.foodsconnected.com/solutions/compliance-management-software/) - [Safety Audits & Quality Management](https://www.foodsconnected.com/solutions/safety-and-quality-management-software/) - [Food Procurement Management Software](https://www.foodsconnected.com/solutions/procurement-supply-chain/) - [Food Specifications & NPD](https://www.foodsconnected.com/solutions/specifications-and-npd-software/) - [CSR & Supply Chain Sustainability](https://www.foodsconnected.com/solutions/csr-management-software/) - [Food Traceability Software](https://www.foodsconnected.com/solutions/food-traceability-software/) - [Reporting & Analytics](https://www.foodsconnected.com/solutions/food-software-reporting-tool/) - [HACCP Management Software](https://www.foodsconnected.com/solutions/haccp-software/) - [Meat Processing Software Solution](https://www.foodsconnected.com/solutions/meat-processing-software/) - [Our Services](https://www.foodsconnected.com/our-services/) - [Sectors](https://www.foodsconnected.com/sectors/) - [About Us](https://www.foodsconnected.com/about-us/) - [Blog](https://blog.foodsconnected.com/?_gl=1*8p51p6*_gcl_au*NTI1NDc4NjczLjE3MzM3ODU3ODc.*_ga*MjE3OTA1Njg4LjE3MzM3ODU3ODU.*_ga_X4TZRQCH9W*MTczNjk0MTQ5NC45LjEuMTczNjk0MjY3NC41MS4wLjA.) - [Resources](https://www.foodsconnected.com/resources/) - [Support](https://support.foodsconnected.com/support/home?_gl=1*hrp5ae*_gcl_au*NTI1NDc4NjczLjE3MzM3ODU3ODc.*_ga*MjE3OTA1Njg4LjE3MzM3ODU3ODU.*_ga_X4TZRQCH9W*MTczNjk0MTQ5NC45LjEuMTczNjk0MjY4OC4zNy4wLjA.) [Request a Demo](https://www.foodsconnected.com/request-a-demo) ![Digital livestock procurement: how smart procurement tools drive efficiency](https://blog.foodsconnected.com/hubfs/Blog%20Imagery%20(PI%20AUTOMATED)/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg) [Procurement](https://blog.foodsconnected.com/tag/procurement) # Digital livestock procurement: how smart procurement tools drive efficiency By [Natalie Thorpe](https://blog.foodsconnected.com/author/natalie-thorpe) 04/10/2022 [Back](https://blog.foodsconnected.com) Digital livestock procurement: how smart procurement tools drive efficiency Share [mailto:?subject=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools%20&body=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools&media=https://4895550.fs1.hubspotusercontent-na1.net/hubfs/4895550/Blog%20Imagery%20%28PI%20AUTOMATED%29/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg](mailto:?subject=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools%20&body=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools&media=https://4895550.fs1.hubspotusercontent-na1.net/hubfs/4895550/Blog%20Imagery%20%28PI%20AUTOMATED%29/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg) [Back to main blog](https://blog.foodsconnected.com) Share [mailto:?subject=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools%20&body=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools&media=https://4895550.fs1.hubspotusercontent-na1.net/hubfs/4895550/Blog%20Imagery%20%28PI%20AUTOMATED%29/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg](mailto:?subject=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools%20&body=Check%20out%20https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools&media=https://4895550.fs1.hubspotusercontent-na1.net/hubfs/4895550/Blog%20Imagery%20%28PI%20AUTOMATED%29/Blog%20Headers/Understanding%20the%20role%20of%20risk%20management%20in%20food%20safety.jpg) When it comes to livestock procurement, there are many factors that influence supply, including market changes, disease outbreaks, weather, and price of substitute goods to name a few. All of which present their own challenges when it comes to driving cost efficiency across meat supply chains. To mitigate this impact, organisations have long used procurement and purchasing tools. Typically, these tools have come in the form of siloed procurement management systems (PMS), contract management systems, or sourcing and procurement automation solutions (SPAS). Today, procurement tools have become much more integrated and designed to automate and digitise the entire procurement process, from sourcing to contract management, order placement and performance review. Companies that implement these smart procurement solutions can gain significant cost savings and drive long-term value. In fact, according to research from [Aberdeen Group](https://www.aberdeen.com/featured/automation-helps-cpos-reduce-procurement-and-supply-chain-management-costs/), organisations that invest in procurement solutions can see a return on investment of up to 25%. Learn how Foods Connected’s Livestock [Procurement Solution](https://www.foodsconnected.com/solutions/procurement-supply-chain/) drives cost efficiency. ## Centralised supplier management In today’s business landscape, regulatory compliance is a key issue for all industries. This is particularly true the food industry, where large-scale recalls are commonplace. In such industries, procurement teams have long been tasked with validating and verifying the source of materials and services. They also must manage supplier relationships, including tracking and audits. Foods Connected offers a fully integrated supply chain management solution that links supplier compliance, food safety and quality, product specifications and sustainability to your livestock procurement function. Businesses can benefit from real-time visibility of which suppliers are approved and compliant to supply, and apply exclusion zone to supplier maps in the case of disease or recall. This allows your business to manage risk more efficiently to ensure only compliant suppliers remain on your approved supplier list. ## Smart pricing grids Foods Connected’s pricing grid feature ensures your business procures the right quality of raw material at the right price, with penalties applied to product that falls outside of your desired specification. The pricing grid tool is fully customisable, enabling your business to specify exactly how penalties or bonuses are applied when livestock are graded. The user-friendly tool has an inbuilt grid approval process and facilitates comparison of grids and duplication of grids – All of which is actionable in the click of a button. Active pricing grids can be linked to contracts for longer-term agreements or directly to an order that is placed regularly with your farmers. This provides your business and your farmers with greater transparency over the pricing process, as the parameters are clearly set out from the beginning and centrally accessible by all parties to refer back to. When the Livestock are processed, the relevant pricing grid is used to automatically calculate the final price to be paid to the farmer. A full summary of which categories animals fell into on the grid is also available for review, providing valuable insight to inform future purchasing decisions. ## Streamlined contract and order management Whether your business agrees long term contracts with suppliers for animals in feedlots or completes spot bookings a week or two in advance, Foods Connected has the capability to manage your requirements. Our contract solutions enable you to create, share and manage your livestock procurement negotiations and agreements from one central location, including information on delivery period and price with the relevant pricing grid and quality parameters interlinked. Once a contract agreement is finalised, the data will be accessible within the Order Manager, allowing a purchase order to be issued seamlessly. Once livestock are received into the lairage, details can be recorded against the booking to help generate a kill agenda and when the animal is slaughtered and graded via the pricing grid, the weight and quality data can be sent from your ERP system against the Order to calculate the payment due. Farmers can be notified by email with their Livestock feedback and due payments, and the system can provide an RCTI if required. Access to real-time analytics facilitates the comparison of supplier offers and review of historic negotiations and agreements to ensure you are always getting the best possible deal from the most suitable supplier. ## Identify gaps in supply Foods Connected's procurement suite provides real-time visibility over stock control and forecasting of what product is required, where it is required and when. Helping you stay one step ahead of the game on any outstanding livestock volumes. Livestock volumes that have been forecasted but not yet acquired, can be automatically assigned to a new negotiation template within the purchasing manager. This will allow you to begin a new contract negotiation process with alternative suppliers to ensure gaps in supply are identified early on to limit supply chain disruption. ## **Leverage market insights & reporting** Market data analysis and reporting help to keep your business up to date on market changes, compare supplier pricing and create internal reports on the impact of our livestock purchasing decisions on overall production performance as well as profit and loss. Foods Connected have collaborated with [Mintec](https://www.mintecglobal.com/), an industry-leading provider of global market published commodity pricing data. Mintec data covers more than 14,000 food and packaging market prices across 650 commodity types, covering 18 different food and non-food categories. The integration between the two systems will provide buyers with the ability to combine their live purchasing negotiation data with an extensive range of market data for insight and benchmarking to ensure evidence-based decisions are being made, helping to reduce costs in their business. ![Natalie Thorpe](https://blog.foodsconnected.com/hubfs/Natalie%20Thorpe%20icon-1.png) ###### Natalie Thorpe A graduate of Letterkenny Institute of Technology, Natalie studied Visual Communication and Graphic Design. When she's not creating up new designs for company materials and branding, writing, compiling marketing plans or implementing new UX strategies, you'll find her roaming a deserted beach in search of her disappearing dog, or soaking up different cultures on her globetrotting adventures! 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[Continue Reading](https://blog.foodsconnected.com/procurement-analytics-the-ultimate-guide) [![Procurement challenges 2022: When will normality be restored in the food industry?](https://blog.foodsconnected.com/hubfs/shutterstock_1921640777.jpg)](https://blog.foodsconnected.com/procurement-challenges-2022) 4 min read [Sustainability](https://blog.foodsconnected.com/tag/sustainability) [Supply Chain Management](https://blog.foodsconnected.com/tag/supply-chain-management) [Procurement](https://blog.foodsconnected.com/tag/procurement) ##### [Procurement challenges 2022: When will normality be restored in the food industry?](https://blog.foodsconnected.com/procurement-challenges-2022) By [Natalie Thorpe](https://blog.foodsconnected.com/author/natalie-thorpe) on 08/08/2022 The food industry is a vital part of the global economy. In fact, it accounts for 8% of GDP worldwide. From production... 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All rights reserved. - - - - ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "articleSection" : [ "Challenges in livestock procurement", "Benefits of digital livestock systems", "Improving forecasting and cost control", "Strengthening supplier relationships", "Driving end-to-end supply chain visibility" ], "author" : { "@type" : "Person", "name" : "Greer McNally" }, "dateModified" : "2022-07-07", "datePublished" : "2022-07-07", "description" : "This article explores how digital livestock procurement tools enhance cost efficiency by improving forecasting, strengthening supplier performance, reducing manual processes, and providing real-time visibility across livestock supply chains.", "headline" : "Digital livestock procurement: driving supply chain cost efficiency through smart procurement tools", "image" : "https://blog.foodsconnected.com/hubfs/digital-livestock-procurement-header.jpg", "keywords" : [ "livestock procurement", "digital procurement tools", "food supply chain cost efficiency", "real-time livestock data", "smart procurement technology" ], "mainEntityOfPage" : { "@id" : "https://blog.foodsconnected.com/digital-livestock-procurement-driving-supply-chain-cost-efficiency-through-smart-procurement-tools", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.foodsconnected.com/hubfs/foodsconnected-logo.png" }, "name" : "Foods Connected" } } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Digital livestock procurement uses smart tools to track pricing, availability, performance and market trends, enabling more informed buying decisions across the supply chain." }, "name" : "What is digital livestock procurement?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "They reduce manual admin, centralise supplier and pricing data, improve forecasting and allow procurement teams to react to real-time changes in livestock markets." }, "name" : "How can digital tools improve livestock procurement?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Smart tools highlight cost-saving opportunities, compare suppliers, identify risk trends and provide accurate forecasting to help teams optimise buying decisions." }, "name" : "How does digital livestock procurement drive cost efficiency?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Yes. Digital procurement platforms track supplier performance, improve transparency and support collaboration through shared data and more consistent communication." }, "name" : "Can digital systems strengthen supplier relationships?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Real-time data helps procurement teams respond to price fluctuations, availability changes, quality issues and supply risks before they impact operations." }, "name" : "Why is real-time data important in livestock procurement?" } ] } ```