LESSON 9

PURCHASING, RECEIVING, STORING OF FOOD SUPPLIES

TOPICS

1. Purchasing
2. Receiving
3. Storage

LEARNING OUTCOMES

At the end of the lesson, you should be able to:

1. Define purchasing, receiving and storing.
2. Make a flowchart of the purchasing process.
3. Describe the purchasing process involved in a food service.
4. Explain some of the features of a good receiving area.
5. Discuss the type of storage areas in relation to the kinds of food stored.
6. Explain how food supplies should be stored.
7. Perform the activities under related learning experiences.

PURCHASING

It is the process of getting the right product into a facility at the right time and in a form that
meets pre-established standards for quantity, quality and price. In practice, purchasing is a complex and
dynamic process; it is a sequence of consecutive actions with the goal of securing food supplies, and
equipment to meet the needs of the foodservice operation. From the beginning to end of the process,
an exchange of value occurs between the buyer and the seller that is usually goods exchanged for
money.

There is much more to the process but it varies among operations, depending on whether a
formal, informal or combination of approaches is used to complete the process. The steps specific to
each of these methods of purchasing are discussed later in this module.
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Illustration 9.1. The steps specific to each of these methods of purchasing are discussed later in this module.

Informal or formal methods of buying may be used, sometimes varying for different
commodities. The buyer should be knowledgeable about the market and should understand the legal
implications of contracts and bid buying Purchasing may be responsibility of the foodservice
administrator or may be done centrally through purchasing department. Group buying, in which several
organizations combine their purchasing volume, has been successful in many cases. The safety food
products are protected by several federal agencies, and quality grades have been established for many
products of desired quality. Decisions must be made by the foodservice on the market form preferred,
the quality to buy and whether to make or buy prepared food. Good purchasing procedures include the
use of appropriate buying methods, establishment of ordering schedules and a system of
communicating needs from production and service areas to the buyer. Food and supplies should be
received and checked by trained personnel and properly stored at appropriate temperature.

RECEIVING

A successful purchasing function in foodservice operation includes a series of receiving, storage

and inventory procedures for food supplies. Standard operating procedures for these activities are of j
particular importance to ensure that delivered products meet predetermined standards of quality and
are held under conditions to preserve this quality until the items issued production. A review of
receiving practices is included in this chapter. Requirements for storage facilities and records for
inventory control are also included.

Receiving is the point at which foodservice operations inspect the products and take legal
ownership and physical possession of the items ordered. The purpose of receiving is to ensure that the
food and supplies delivered match established quality and quantity specifications. The receiving process
also offers an opportunity to verify price. A well-designed receiving process is important to cost and

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quality control and therefore warrants careful planning and implementations. Minimally, a good
receiving program should include clearly written policies and procedures ' on each of the following
components.
 1. Coordination with other departments (e.g. production, and accounting)
2. Training for receiving personnel
3. Parameters of authority and supervision
4. Scheduled receiving hours
5. Security measures
6. Documentation
7. Potentials of poorly planned receiving program include the following:
∙ Short weights

∙ Substandard quality

∙ Double Billing inflated price

∙ Mislabeled merchandise

∙ Inappropriate substitutions

∙ Spoiled or damage merchandise pilferage or theft

In a simple term, a poorly planned and executed receiving process results in financial loss for the
operation.

COORDINATION WITH OTHER DEPARTMENTS

The receiving function needs to be coordinated with other functions and department in the
foodservice organization. Purchasing, production and accounting are three key areas that need a well
defined working relationship with receiving personnel. The purchasing department document standard
of quality that the receiving personnel will use to analyze product at the point receiving. The purchasing
department typically is also responsible for scheduling deliveries. The production department needs in
house food and supply products to meet the demands of the menu and service centers. Receiving
sometimes transfers product directly to production.

In many organizations, the accounting department is responsible for processing the billing of
food and supply purchases. Receiving records must be completed and submitted to accounting in a
timely fashion so that payments are made on ti.me. Prompt billing allows organization to take
advantage of early payments discounts and avoid late payment penalties. Discrepancies between what
was ordered and what was delivered are also handled by the accounting department.

PERSONNEL

The responsibility of receiving should be assigned to a specific, competent, well trained person.
However, in reality in this job is not often specifically assigned at all, but simply handled by the person
working close to the dock. During training this individual must learn to appreciate the importance of the
receiving function in cost and quality control.

Qualifications of the receiving clerk should include knowledge of food quality standards and
awareness of written specifications, the ability to evaluate product quality and recognize unacceptable
product, and an understanding of the proper documentation procedures. The receiver's authority must
be well defined by policy, which should clarify the scope of the receiver's authority and to whom he or
she reports. Even though the receiver is well trained and trustworthy, consistent and routine supervision
of the receiving area is recommended to ensure that procedures are followed and that area is kept
secured.
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FACILITIES, EQUIPMENT AND SANITATION

A well-planned receiving area should be as close to the delivery docks as possible, with easy
access to the storage facilities of the operation. This arrangement helps to minimize traffic through the
production area and to reinforce good security measures.

The area itself should be large enough to accommodate an entire delivery at one time. If a
receiving office is in the area, it should have large glass windows so that receiving personnel can easily
monitor the activities of the area.

The amount and capacity of receiving equipment depends on the size and frequency of deliveries
may require a forklift for pallet deliveries. A hand truck may be adequate in medium-to-small operations.
Scales ranging from platform models to countertop designs are needed to weigh goods as they arrive.

THE RECEIVING PROCESS

Once the components of a receiving program are planned and implemented, an organization is ready
to receive goods. The receiving process involves five key steps:

1. Inspect the delivery and check it against the purchase order.

2. Inspect the delivery against the invoice.
3. Accept an order only if all quantities and quality specifications are met.
4. Complete receiving records.
5. Immediately transfer goods to appropriate storage.

1. Methods. The two main methods of receiving are the blind method and the invoice receiving method.
The blind method involves providing an invoice or purchase order, one in which the quantities have
been erased or blacked out, to the receiving clerk. The clerk must then quantify each item by
weighing, measuring, or counting and recording it on the black purchase order. This method order
offers an unbiased approach by the receiving clerk, but is time consuming and therefore, more labor
intensive.

2. Tips for Inspecting Deliveries. The following are some additional tips that the receiver should keep in
mind when evaluating food and supply deliveries:

a. Inspect food immediately upon arrival for quality and quantity ordered.
b. Anticipate arrival and be prepared.
c. Check adequacy of storage space.
d. Have purchase orders and specifications ready.
e. Make certain the receiving personnel are well trained.
f. Check temperatures of refrigerated items upon arrival.
g. Check frozen items for evidence of thawing and burn.
h. Check perishable items first.
i. Randomly open cases or crates of product to determine that the container includes the entire
order.

Numerous resources are available for in evaluating food quality. Several of these are listed at the
end of this chapter.

3. Evaluation and Follow-up. Evaluation of products should be continued as they are issued for use
because some discrepancies may not be detected rn1til the item is in use. When products are found
to be defective, some type of adjustment should be made. If the products are usable but do not
meet the specifications, the buyer may request a price adjustment. The manager may refuse to
accept the shipment or, if some of the food or supplies are used but found to be unsatisfactory, the
 buyer may arrange to return the remaining merchandise or request some type of compensation.

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STORAGE

The flow of material through a foodservice operation begins in the receiving and storage areas.
Careful consideration should be given to procedures for receiving and storage, as well as to the
construction and physical needs of both areas. In planning, there should be a straight line from the
receiving dock to the storeroom and refrigerators and preferably on the same level as the kitchen. A
short distance between receiving and storage reduces the amount of labor required, reduces pilferage
and causes the least amount of deterioration in food products. The proper storage of products
immediately after it has been received and checked is an important factor in the prevention and control
of Joss or waste. When food is left unguarded in the receiving area or exposed to the elements or
extremes of temperature for even a short time, it’s safekeeping and quality are jeopardized.

Adequate space for dry, refrigerator and freezer storage should be provided in locations that are
convenient to the receiving and preparation areas. Temperature and humidity controls and provision for
circulation of air are necessary to retain the various quality factors of the stored food. The length of time
food can be held satisfactorily and without appreciable deterioration depends on the product and its
quality when stored, as well as the conditions of storage. The condition of stored food and the
temperature of the storage units should be checked frequently.

DRY STORAGE

The main requisites of a food dry-storage area are that it should be dry, cool and properly
ventilated. If possible, it should be a location convenient to the receiving and preparation areas.

Dry storage is intended for nonperishable food but separate room should be provided for
cleaning supplies as required in many health codes.

Temperature and Ventilation. The storage area should be dry, the temperature not over 700 °F.

Store arrangement. Food supplies should be stored in an orderly and systematic arrangement.
Definite place should be assigned to each item with similar grouped products.

Sanitation. Food dry storage must be protected from insects and rodents. Means of preventive
measures, such as the use of proper insecticides is implemented. The latter under the direction of
persons qualified for this type of work.

REFRIGERATED STORAGE

The storage of perishable food is an important factor in their safety and retention of quality.
Fresh and frozen food should be placed in refrigerated or frozen storage immediately after delivery and
kept at these temperatures until ready to use. Recommended holding temperatures for fresh fruits and
vegetables are 40°F to 45°F and 32°F for meat, poultry, dairy products, eggs. Frozen products should be
stored at 0° to -20°F.
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