Group Project - PWP - Today Next Class Meet in Event Center...

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Unformatted text preview: Today Next Class Meet in Event Center Chocolate lecture Project pt. IIIV due Hard copy Elec. copy Purchasing Review purchase assignment Tuesday 2/19/08 Receiving Purchasing specification and purchase order assignment due 1 Purchasing 1. 2. 3. 4. 5. 6. 7. 8. Describe the paper trail Define purchasing Review who does the purchasing Discuss the purchasing function and purchasing activities Evaluate purchasing specifications Define par levels Discuss different methods of procurement Practice an inclass purchasing exercise 2 The Paper Trail There should be a paper tracking system that flows with the Operating Cycle of Control. Typical Elements include: Purchase Order Invoice, credit memo, receiving sheet Par stock, inventory sheet, or bin card Purchase or departmental requisition Production sheet Guest check Money collected receipts, cash, or credit memos 3 Purchasing? The term "Purchasing" is often used to describe broader functions: Purchasing: Selection: paying for an item or service (far too restrictive) Procurement: choosing from various alternatives on various levels an orderly, systematic exchange between a seller or supplier and a buyer. The process of obtaining good & services, including all activities associated with determining the types of products needed, making purchases, receiving and storing shipments, and administering purchase contracts. 4 Scope & Formality Independents Small run by an owner, manager, or chef oversees purchasing Medium more than one purchaser, GM coordinates activities Purchasing function lies with Department Heads Large employees fulltime buyers (food, beverage, etc.) Fulltime Purchasing Agent 5 Scope & Formality Multiunits or Franchises Many maintain one or more central commissaries May have a centrally located President of Purchasing Individual units may do local purchasing of some items from approved suppliers 6 Overview of the Purchasing Function Determine requirements Maintain a convenient and sufficient inventory Conduct negotiations This is a collective process involving the chef/ owner/ purchaser/ etc. Achieved through ordering the right amount at the right time Negotiating power is determined by the amount of money to be spent Ethics and values are important considerations 7 Research Activities Value Analysis Purchasing Functions continued How can we increase the overall value of this product or service? Attention is directed to managing the cost of the most expensive items purchased Evaluates products and services that will be available in the future Make from scratch or fully made? 8 ABC analysis Price and Availability Forecasts Make or buy analysis Purchasing Functions continued Maintain supplier diplomacy Educate your suppliers about your needs Purchase, record, store, issue Dispose of excess/ unsaleable items Organize & administer the purchasing function Self improvement for the purchaser Help competitors "what goes around, comes around" 9 The purchaser is responsible for the product until it is used or requisitioned Objectives of the Purchasing Department Maintain an adequate supply Minimize the investment by estimating par stock levels needed to meet demand Maintain quality Obtain the lowest possible EP cost Maintain company's competitive position 10 PrePurchasing Activities Prepurchasing functions are the steps necessary to ensure the right amount and quality level are delivered to the door of the operation. Plan the menu Determine quality and quantity needed to produce the menu Determine inventory stock levels Subtract "onhand" from par levels to determine "amount needed" Refer to/write specs to describe par for purchase 11 Purchasing Activities Formal Steps Develop purchase order Establish bid schedule Issue invitation to bid Tabulate/ evaluate bids Award contract Receive, inspect, store, record transaction Evaluate and followup Issue supplies for production Purchase order Price quotes Select vendor and place order Receive & inspect Evaluate and followup Issue supplies for production Informal Steps 12 Specification Sheet What is it? How is it useful? What is on it? Purch. spec 13 Specification Exact Name: Intended Use: Brand Name: Form: Origin: Size: Pack: Grade: Receiving: Substitutions: Grapefruit, Ruby Breakfast fruit Sysco Whole, seedless Florida Large, 3 " - 4" 26-30 case US No. 1 Firm; No visible spotting or bruising on skins Texas; US Food 14 Maximum Par Largest quantity of a product to have on hand based on the storage space available, and the shelf life of the product Shelf Life the estimated amount of time that a product can be stored without spoilage occurring 15 Minimum Par Smallest amount to have on hand based on purveyor lead time Lead time The time period that begins when the order is placed with the purveyor and ends when the order is received by the foodservice operation Stock Out When foodservice operation runs out of a product 16 Order Sheet with Par Levels Food Catergory: Seafood Day/Date: Monday, 1/8/01 On Hand Par Order Ingredient 10 lbs 40 lbs. 30 lbs. Sole 20 lbs. Scrod 0 20 lbs. 2 dozen Lobsters (3dozen Friday) 1 doz 1 doz 10 lbs. 60/40 (25 lbs Friday for Sunday) 10 lbs. Shrimp 16/20 3 gallons Bay Scallops 20 lbs. Tuna Loin Prepared By:______________ US Foods OG 17 Three Step Process of Selecting a Purveyor 1. Initial survey 2. Develop approved purveyor list Select purveyor Bid sheet PO Identify categories Identify potential purveyors Offers best quality & service Primary and secondary Bid sheet example 3. 18 Methods of Procurement Noncompetitive One stop shopping Standing order Cash & carry Contract buying Stockless purchasing 19 Problems of Buyers Backdoor selling Time spent with sales reps Ethical Traps Responsibility without authority Time constraints/ pressures Difficulty working with dept. heads Late deliveries Substitutions Backorders Receiving/ storage space too small Lack of sales interest Returns and allowances Unreasonable demands from dept. heads 20 ...
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This note was uploaded on 04/06/2008 for the course FSM 1070 taught by Professor Smith during the Winter '07 term at Johnson & Wales University - Denver.

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