Food Purchasing Control

Copyright © 2006 by John Wiley & Sons,

Responsibility for Purchasing
 Who
– – – –

does the purchasing?

Owners Managers Chef Steward

 One

person responsible so they can be held accountable

Copyright © 2006 by John Wiley & Sons,

Perishables & Non-perishables
 Perishables;

those items that are typically fresh foods, and have a relatively short shelf life  Non-perishables; those food items that have a relatively longer shelf life
– – –

Groceries Staples Storeroom items

Copyright © 2006 by John Wiley & Sons,

Developing Standards and Standard Procedures for Purchasing
1. 2. 3.

Quality of food purchased Quantity of food purchased Prices at which food is purchased

Copyright © 2006 by John Wiley & Sons,

Uses for Standard Purchase Specifications
1. 2. 3. 4. 5. 6.

They force owners or managers to determine exact requirements in advance They are often useful in menu preparation They eliminate misunderstandings between stewards and purveyors Allows for true competitive bidding Eliminates need for detailed verbal descriptions They facilitate checking food as it is received
Copyright © 2006 by John Wiley & Sons,

Steward’s Market Quotation List
 Steward’s
– – – –

market quotation list - a form often used as a tool by food purchasers for;
Taking daily inventory of perishables Determining suitable order quantities Recording market quotations Selecting vendors

 Par

stock – maximum quantity that should be on hand at any given time
Copyright © 2006 by John Wiley & Sons,

Periodic Order Method
 Periodic

order method: Amount required for the upcoming period - Amount presently on hand + Amount wanted on hand at the end of the period to last until the next delivery = Amount to order

Copyright © 2006 by John Wiley & Sons,

Perpetual Inventory Method
 Perpetual
-

inventory method: Par stock

Reorder point

= Subtotal + Normal usage until delivery = Reorder quantity

Copyright © 2006 by John Wiley & Sons,

Determinants for Maximum Quantity of Perishables on Hand
1. 2. 3. 4. 5.

Storage space Limits on total value of inventory prescribed by management Desired frequency of ordering Usage Purveyors’ minimum order requirements

Copyright © 2006 by John Wiley & Sons,

Suppliers to Foodservice Operators
1. 2. 3. 4. 5. 6. 7.

Wholesalers Local Producers Manufacturers Packers Local farmers Retailers Cooperative associations
Copyright © 2006 by John Wiley & Sons,

Centralized Purchasing
Advantages:  Foods and beverages can be purchased at lower prices because of volume  Desired quality can be obtained more readily because the steward has a greater choice of markets  Foods can be obtained that meet specs  Larger inventories can be maintained, ensuring reliable supply to individual units  Possibility of dishonest purchasing in individual units are greatly reduced
Copyright © 2006 by John Wiley & Sons,

Centralized Purchasing
Disadvantages:  Each unit must accept the standard item in stock and has little freedom to purchase for its own particular needs  Units can’t take advantage of local specials  Menus are ordinarily standardized, limiting the individual unit managers’ freedom
Copyright © 2006 by John Wiley & Sons,

Means of Obtaining Price Quotes
1. 2. 3. 4. 5. 6.

Telephone Fax Quotation sheets obtained by mail Fax modem Information supplied by salespersons Direct computer links with purveyors via the internet or dedicated telephone line
Copyright © 2006 by John Wiley & Sons,

Necessary Receiving Standards
1.

2. 3.

The quantity delivered should be the same as the quantity listed on the Steward’s Market Quotation List and the invoice The quality delivered should conform to the establishment’s specifications The prices on the invoice should match those circled on the Steward’s Market Quotation List
Copyright © 2006 by John Wiley & Sons,

Sample Invoice
Meats R’ Us 777 Cow Pasture Way Bulls tail, IO Grandview Bistro Date: October 3, 200X

To:

Quantity 20 20

Unit lbs. lbs.

Description Unit Price Beef tenderloin 9.20 Leg of lamb 12.40

Amount 184.00 248.00 $432.00

Copyright © 2006 by John Wiley & Sons,

Inventory Control

Regardless of the methods used by employees to requisition food and beverage products, or management to issue these, inventory levels will be affected. It will be your responsibility and that of your purchasing agent to monitor this movement and purchase additional products, as needed. Re-stocking the inventory is critical if product shortages are to be avoided and if product necessary for menu item preparation is to be available.

Copyright © 2006 by John Wiley & Sons,

Inventory Control
 Operators must be careful not to overload storage capacity. Increased inventory of items generally leads to greater spoilage and loss due to theft.  Shelf life is the amount of time a food item retains its maximum freshness, flavor, and quality while in storage. The shelf life of food products varies greatly.  The cost to the vendor for frequent deliveries will be reflected in the cost of the goods to the operator.
Copyright © 2006 by John Wiley & Sons,

Inventory levels are determined by a variety of factors such as: 1. Storage capacity 2. Item perishability 3. Vendor delivery schedule 4. Potential savings from increased purchase size 5. Operating calendar 6. Relative importance of stock outages 7. Value of inventory dollars to the operator
Copyright © 2006 by John Wiley & Sons,

Receiving Standard Procedure
1. 2. 3. 4. 5.

Verify the quantity, quality, and price for each item conforms exactly to the order placed Verify invoice with rubber invoice stamp List foods delivered each day on the receiving Clerk’s Daily Report for that day Forward paperwork to proper personnel Move food to appropriate storage areas
Copyright © 2006 by John Wiley & Sons,

The Invoice Stamp Provides for:
1. 2. 3. 4. 5.

Verification of the date food received Signature of the receiving clerk who vouches for the accuracy of the order Steward’s signature, acknowledging delivery of food items Food controller’s verification calculations are correct on the invoice Signatory approval of the bill for payment by an authorized individual before a check is drawn
Copyright © 2006 by John Wiley & Sons,

Receiving Clerk’s Daily Report
 Directs
– – –

– foods that extremely perishable by nature, purchased daily.
For immediate use Considered to be issued on delivery Go directly onto today’s food cost

 Stores
– –

– perishable but have a relatively longer shelf life.
Not for immediate use Included on food cost when they are issued
Copyright © 2006 by John Wiley & Sons,

Training for Receiving
 The

great problem in employing receiving personnel is with the vast amount of knowledge of foods these workers require  This may explain why some restaurants do not require quality checks upon delivery  Someone has to do it!!!  If not your customers will!!!
Copyright © 2006 by John Wiley & Sons,

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