NUTR 4055 Capitulo 6.pdf

The Organization and Administration of Purchasing Objectives Describe the methods used to plan and organize the purchasing activities of a hospitality operator. Recognize the issues involved in administering purchasing activities. Differentiate the purchasing organizational pattern between small ind...

The Organization and Administration of Purchasing Objectives Describe the methods used to plan and organize the purchasing activities of a hospitality operator. Recognize the issues involved in administering purchasing activities. Differentiate the purchasing organizational pattern between small independent, medium independent, and multiunit hospitality operations. Explain the advantages and disadvantages of centralized purchasing. The Administrative Stages of Purchasing  Planning  Organizing  Staffing and Training  Directing  Budgeting and Controlling Planning Objectives of purchasing Maintain adequate supply Minimize investment Maintain quality Obtain lowest possible edible-portion (EP) cost Maintain competitive advantage Organizing for the Independent Operations Independent operations Small Medium-sized Co-op Large Organizational Pattern Very Small and Medium Independent Operation Organizational Pattern Large Size Independent Operation and Co-op Organizing for Chain Operations Local unit level Company-owned stores Centralized purchasing Organizing for Chain Operations (Multi units) Organizing for Chain Operations – Responsibilities Vice President of Purchasing Set purchasing guidelines for unit managers Negotiate contracts – national/long term Purchase Specifications Research Activities Support/Resource Person Unit Managers Supervise Central Distribution and Commissary Organizing for Chain Operations Unit Manager: Franchise or Company Owned Store buy from: 1. 2. 3. 4. Approved suppliers (approved by VP of Purchasing) Other suppliers – that meet company’s quality standards Franchisor’s company owned commissary and/or distribution center All of the above Advantages: Prices, quantity, quality control Disadvantages: local business although always something (citizen / purchasing experience). Process of recruiting, hiring, and training personnel to perform specific tasks in an organization. Staffing Staffing Job Specifications (Figure 6.6, page113) Technical Skill Interpersonal Skill Conceptual Skill Job Descriptions Compensation Staffing Ejemplos Job Descriptions Training Part time and Full time buyers Job and company orientation Formal instruction On-the-job training Seminars, courses, supplements Directing Directing and Working with Others Group Director – resources, supervise Other Department Director Disagreements - waste and spoilage Stewards Sales Conflict – authority over hourly employees Controlling – systems and procedures used by managers to ensure that the actual costs of doing business are consistent with the expected (or budgeted or theoretical) costs. Budgeting – a realistic statement of management’s goals and objectives, expressed in financial terms. Budgeting and Controlling Inventories Budgeted Operating Expenses vs. Actual Operating Expenses Inventory Control – direct and indirect control Approved Supplier List – Advantage for control Challenges: Waste/Spoilage and Security Establishing and Following Selection and Procurement Policies Policies Accepting Gifts from a Supplier Favoring Suppliers Establishing Reciprocity Accepting Free Samples Accepting Discounts: Quantity, Volume, Cash, Promotional Establishing and Following Selection and Procurement Policies Supporting Local Suppliers Adhering to Quality Standards Following Shopping Procedures Limiting Quantity Limiting Prices Making Personal Purchases/Steward Sales Ethic Code Establishing and Following Selection and Procurement Policies Performance Evaluation – Operations and Procurement The Materials Budget Inventory Turnover Percentage of Sales Volume Stockouts Number of Late Deliveries Number of Items that must be returned to suppliers Number of Back Orders Checking AP Prices Others: Inventory stock levels, Waste/spoilage due to bad purchasing, Client reject/return Establishing and Following Selection and Procurement Policies Performance Evaluation – Operations and Procurement Inventory Turnover BI: Inventory Value Beginning of the Year EI: Inventory Value End of the Year CGS: Annual Cost of Good Solds Average Inventory = (BI + EI) / 2 Inventory Turnover = Average Inventory / CGS General expected factor = 20 to 25 (two weeks inventory) Establishing and Following Selection and Procurement Policies Performance Evaluation – Operations and Procurement Inventory Turnover Given these data, compute the inventory turnover: Beginning Inventory (BI): $15,000 Cost of Goods Sold: $325,000 Ending Inventory (EI): $12,000