Lecture 6: Procurement

Question 1

Procurement

Answer 1

• Managerial function of acquiring resources to operate a food service
• A successful purchasing function in a foodservice operation is integrated with a series of procedures for handling food and supplies

Question 2

Manager’s responsibility:

Procedures include

Answer 2

• purchasing
• receiving
• storage
• inventory control

Question 3

Purchasing

Answer 3

The process of securing the right product into a facility at the right time and in a form that meets pre-established standards for quantity, quality and price

Question 4

Considerations when acquiring food

Answer 4

• specifications
• quality–grades
• price
• service
• yield

Question 5

Value formula

Answer 5

relationship between quality and price: V=P/Q

Question 6

Producers

Answer 6

Producers, generally farmers or ranchers, produce raw food to sell to processors or manufacturers, who sell to distributors or directly to the foodservice operation.

Question 7

Processors or Manufacturers

Answer 7

The food supply in the United States is marketed not only by quantity but also by quality, variety, and convenience - the processor is responsible for the many forms of a food available to the customer.

Question 8

Distributors

Answer 8

Distributors are responsible for transferring products from the processor or manufacturer to the supplier.

Question 9

Suppliers

Answer 9

Suppliers sell products to the ultimate buyer, the customer.
The foodservice manager generally will buy more often from the supplier than from a wholesaler, broker, or manufacturer’s representative

Question 10

Customers

Answer 10

The customer is anyone who is affected by a product or service.

Question 11

Types of distributors

Answer 11

• wholesalers
• Manufacturers’ representatives
• Brokers

Question 12

Manufacturers’ representatives

Answer 12

represent a single manufacturing company and inform suppliers of the products

Question 13

Brokers

Answer 13

sales and marketing reps who:

• contract with groups of manufacturers or processors
• sell and conduct local marketing programs with wholesalers, suppliers,or foodservice operations

Question 14

Types of wholesalers

Answer 14

• full wholesalers
• special breed distributors
• wholesale clubs

Question 15

wholesalers

Answer 15

Purchase from various manufacturers or processors, provide storage, sell, & deliver products to suppliers

The wholesaler protects the quality of a product from the time it is purchased to the time it is delivered to the foodservice operation.

Question 16

Skills of purchasing managers

Answer 16

• interpersonal communication
• managing change
• customer focus
• ability to make decisions
• negotiation
• analytical ability
• conflict resolution
• problem solving
• influence and persuasion
• computer literacy

Question 17

Products should be evaluated objectively, and buying decision made on the basis of ___, ____, and _____

Answer 17

quality, price, and service