5 Smart Purchasing Habits for Candy Businesses

Purchasing for a business is a daily challenge, especially when balancing quality and cost. Adopting smart purchasing habits can help businesses manage expenses while maintaining or improving product quality. Here are five key strategies to consider.

1. Staggered Deliveries
Scheduling deliveries strategically can help maintain a steady workflow. Candy makers need to ensure they receive raw materials for production and packaging materials for finished goods while keeping storage space manageable. By staggering deliveries, companies can avoid overcrowding their facilities and optimize production. This approach also allows for better planning when hiring seasonal employees, as production schedules can be aligned with delivery dates.

2. Keeping Records
Maintaining detailed purchasing and sales records is essential for future planning. Businesses that track inventory levels, sales patterns, and seasonal demand can make more informed decisions for the following year. Reviewing past records helps determine whether the timing of purchases was effective and if inventory levels were adequate. By analyzing this data, companies can adjust their purchasing strategies to avoid shortages or excess stock.

3. Asking the Right Questions
Before making large purchases, especially for equipment, candy businesses should carefully evaluate their needs. Key questions to consider include:

• Is this purchase necessary?
• Will it improve efficiency?
• Is there sufficient space for it?
• Are electrical or plumbing modifications required?

By addressing these questions in advance, your business can avoid costly mistakes, such as purchasing equipment that does not fit in your facility or requires expensive modifications.

4. Tracking Weather Trends
Weather can significantly impact customer buying habits. Businesses that track weather patterns year over year can better predict demand. For example, a snowstorm before Valentine’s Day or an unusually warm Easter can influence sales. By understanding these patterns, businesses can adjust inventory and marketing strategies to maximize sales opportunities.

5. Cooperative Purchasing
Collaborating with other candy businesses can lead to better purchasing power. By combining orders, businesses can meet higher minimum purchase requirements and receive better pricing on supplies and ingredients. However, this approach requires flexibility. If this strategy interests you, it is important to identify the best partners for joint purchases, ensure they have adequate storage for larger shipments, and align their purchasing schedules with others. While it may require adjustments, cooperative buying can result in significant cost savings.

Adopting these purchasing habits can help businesses operate more efficiently and reduce unnecessary costs. Implementing even one or two of these strategies can lead to better financial management and long-term success.

Get ahead for the fall/winter holiday season! Make plans to attend RCI’s Annual Convention & Industry Expo, scheduled for June 16-19, 2025, at the Northern Kentucky Convention Center in Covington, Kentucky—across the river from downtown Cincinnati. Connect with fellow industry professionals and grow your business through impactful education, tours and collaboration. Explore what's new in the confectionery industry and take away effective business and production strategies. Sign up to get notified when registration opens for this event to secure the best rates!

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7 Buying & Inventory Tips for Retail Confectioners

The COVID-19 outbreak caught everyone by surprise. There were so many unknowns at the beginning of the outbreak, which caused many producers to reevaluate their inventories and production plans. The full impact of the pandemic on the supply chain is still not fully known. The confectionery industry has felt the ramifications of COVID-19 from raw materials to finished products. The lack of a steady and healthy workforce has also contributed to the already challenging circumstances. RCI member Christopher Romocean, with Linnea’s Candy Supplies, shares seven ways businesses can avoid or at least help mitigate the effects of supply shortages.

1. Plan further ahead than you usually would. Just-in-time purchasing may have worked well in the past, however, building a higher-than-normal inventory of supplies and thinking further into the future when ordering will help provide a buffer when supplies are limited or nonexistent.

2. Build long-term relationships with your suppliers. Building trust and communicating with your suppliers will get you the best and most current information about supply issues, lead times and advice about how to best deal with your situation.

3. Provide forecasts to your suppliers. If your suppliers know what you will need, especially if your needs have changed, the chances of getting products when you need them increases dramatically. Uncertain demand from your customers will make this process difficult, but your best estimate is better than no estimate at all.

4. Use technology. If you are able to look at historical data and add in any projections for new business, you will have a fairly accurate idea of what to stock, as well as, what to provide as a forecast to your suppliers. Your suppliers may also be able to help you by providing reports of your past purchasing history.

5. Place orders in advance with future ship dates. If you are able to predict what you are going to need in the future, place orders with future ship dates. While this is not a guarantee the product will be available, by ordering with an extended lead time your window for availability is much wider and your chances of getting what you want will increase.

6. Be flexible, if possible. Due to a number of unforeseen circumstances, it is possible that your usual products and supplies may not available for a prolonged period of time. If all the planning and forecasting is not enough to bridge the gap, be prepared to have the flexibility to substitute with similar products that are available. This is not an ideal solution for many confectioners who have been using the same products to produce their confections for many years, but one of necessity to keep their business open during these unprecedented times.

7. Check with suppliers before committing to new projects. Check with your suppliers about availability before taking on a new or large project. If supply issues can be identified before a commitment is made for a project, alternatives may be offered by your supplier to help find a suitable replacement and keep the project moving forward.

While there is no “one-size-fits-all” approach; using any purchasing strategies available to get your business through these difficult periods will help. With so many unknowns in our industry involving long lead times, shortages or challenges predicting demand, communication and planning will be the two most important things you can focus on to increase your chances of getting what you need, when you need it.

Being a member of RCI is also a great resource when a crisis arises. RCI members are more than willing to share information and insight on how to navigate through difficult circumstances. The wealth of knowledge and experience of RCI members that can be tapped into is priceless whether it is in person, through a live virtual event or through RCI’s online forum, The Candy Dish, where members can pose a question online and receive feedback from fellow members.

Crave more? If you like what you read here, look for the "Subscribe now" box on the right to enter your email address and start receiving weekly tips, like this, delivered straight to your email inbox. RCI's blog is just one of the many resources we offer to help candy makers refine their craft and build upon their business and marketing practices. Follow us on Facebook for even more sweet inspiration.

Not a member? Click here to learn how RCI can help you build your sweet business.