Fsm Ch 5 Procurement

Front 1

Foodservice Goal

Back 1

“Serve quality meals while maximizing value for both the operation and the customer” (Gregoire, 2013)

Front 2

Value

Back 2

Perceived relationship between quality and price

Front 3

Purchasing

Back 3

Getting the right product into a facility at the right time and in a form that meets pre-established standards for quality, quantity and price.

Subsystem in transformation element of the systems

Front 4

Who does the purchasing in foodservice?

Back 4

Purchasing manager
Dietitian
Food service manager
Supervisor

Front 5

Skills Needed as a Buyer

Back 5

Communication
Decision making
Negotiation
Ethics
Change maker

Front 6

Flow of Purchasing

Back 6

Identify needs

Determine standards of quality and write specifications

Estimate quantities

Calculate inventory

Identify amount to purchase

Develop purchase orders

Select and negotiate with vendors

Front 7

Current changes/ issues in purchasing

Back 7

Food suppliers are expanding
their line
Suppliers provide more
non-merchandise services
Computerized services
Block purchasing
Sustainability
Ethics

Front 8

Ethical Questions

Back 8

Can I accept gifts from the supplier? NO
Can I purchase for my personal use some of the product that I purchase for the operation if I pay the supplier directly? NO
Can I share with a supplier quotations from other suppliers to receive a lower bid on a product and save money for the foodservice operation? NO

Front 9

Marketing Channel

Back 9

Producers

Manufacturers

Distributors

Suppliers

Customers

Front 10

Market Regulation

Back 10

1. U.S. Department of Health and Human Services:

Food and Drug Administration
(Standards of identify)
(Genetically engineered foods)
U.S. Public Health Service

2. U.S. Dept. of Agriculture

3. USDA Services and Programs
USDA Grades
Food Safety and Inspection Service

4. U.S. Department of Commerce

Front 11

In order to meet the goal, buyers:

Back 11

Try to have right amount of food on hand when needed
Ensure that food is appropriate quality
Buy food at the lowest cost
Keep quantities in inventory or storage as low as possible

Front 12

The Purchasing Process

Back 12

Complete needs assessment:
Evaluate menu
Standardize recipe
Gather input from product evaluation team
Gather input from management staff
Forecast production demand

Front 13

Categories of Purchasing Methods

Back 13

a. Informal
b. Formal
c. Variations on Methods of Purchasing
Prime vending
Just-in-time (JIT)

Front 14

Independent and Organizational Buying

Back 14

Independent
Centralized
Group
Warehouse club
Just-in-time purchasing
Buying local

Front 15

To select purchasing method:

Back 15

Consider size and philosophy of operation
Determine purchase volume
Determine frequency of delivery
Consider distributor location
Evaluate department storage facilities
Determine available personnel

Front 16

Steps in Supplier Selection

Back 16

Survey stage
Inquiry stage
Selection
Supplier performance evaluation