What is the goal of the purchasing process?
to secure the products needed at the best price of the best specified quality and delivered as needed in a safe and sanitary manner
what are the 3 types of distributors?
wholesalers
processors representatives
food brokers
What are the 3 types of wholesalers?
- full of limited function wholesalers
- wholesale clubs
- speciality wholesalers
What are some buyer responsibilities?
- determine foodservice department needs in terms of products equipment and services
- selecting vendors
- selecting the method of purchasing
- placing and following up on orders
- establishing and maintaining an inventory system
- maintaining effective vendor relations
- tracking changes in the market and economic conditions
- utilizing current technology to facilitate the procurement process
What are the 10 steps of the procurement process?
- complete needs assessment
- select purchasing method
- develop approved vendor list
- obtain bid or price quotes
- determine order quantity
- establish and maintain inventory system
- place order
- receive order
- store order
- issue items
What is involved when you conduct a needs assessment?
- evaluate the sample
- standardize recipes
- gather input from product evaluation team
- gather input from management staff
- forecast production demand
- establish budget
- assess equipment and space availability
What is involved when in selecting a purchasing method?
- consider size and philosophy of the operation
- determine purchase volume
- determine frequency of delivery
- consider distributor location
- evaluate department storage facilities
- determine available personnel
What are the 2 methods of purchasing?
informal
formal
What are the 5 components of buying methods
- single sourcing
- group purchasing
- prime vendor agreements
- centralized purchasing
- just in time purchasing
Prime vendor agreement
buyer contracts with one vendor to supply a specified percentage of a given category of product
benefits: increased competition, reduced cost of inventory, space and order processing, availability of value-added services
Value-added service
-to become more competitive, distributors are offering services that go beyond simply competing the deliver accurately and on time
What are the 3 steps involved in developing an approved vendor list?
- survey stage
- inquiry stage
- supplier performance evaluation
How to select a vendor?
-develop approved vendor or distributor list using SINE
What is SINE?
S-survey: explore all possible sources
I-inquire: evaluate qualifications, size, capacity, finances, technology, location
N-negotiate: communicate to secure the best price and deliver commitment
E-experience: monitor service
Obtain bid or price quotes
bids/quotes are sought if not suing a primevendor
- develop specifications for each item
- obtain best prices and terms
- develop and use purchase requisition form
- develop a bid packet that can be shared and solicit bids from at least 3 vendors
Inventory
used to describe the goods/products a foodservice operation has on hand/in stores
What are the 2 main types of inventory?
perpetual and physical
Physical inventory
- periodic actual counting and recording of products in stock in all storage areas
- involves 2 people
Perpetual inventory
- continual real time tallying of items in stock
- purchases and issues continuously are recorded for each product in storage
- balance in stock at all times
How to determine order quantity
- forecast menu portions
- determine standard portions based on standardized recipes
- determine serving supplies
- assess food on hand
Forecasting
estimating needs for specific items using past data to determine future needs
What is required when placing the order?
- specify price
- specify quantity
- specify payment method
- distribute copies of purchase order
Inventory par levels
- minimum quantity of a given item that a business must keep on hand
- when actual quantity falls below the par level a new order is placed
- used to prevent shortages while avoiding holding excess goods in inventory
What is purchase requisition?
form used by fs manager to request items for purchasing manager or department
generally included on all requisitions: requisition number, delivery date, budget account number, quantity needed, description of the item
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Lecture 19
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Lecture 227
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Lecture 39
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Lecture 413
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Lecture 4-Product Selection7
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Lecture 529
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Lecture 6- Receiving, Storage, and Inventory Control23
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Lecture 754
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Lecture 811
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Lecture 95
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Lecture 1012
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Lecture 11-Leadership29
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Lecture 12- Planning and Decision Making17
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Lecture 1325
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Lecture 14- Control Function and Financial Management4
