By: Murage Macharia

PURCHASING
This may be defined as a function concerned with the
search, selection then purchase, receive storing and final
use of a commodity in accordance with the catering
policy of the establishment.

Searching
 The purchasing officer is responsible for looking for
the items which are most suitable for the business.
Selection
 He is responsible for selecting the most suitable items.

Murage Macharia

Murage Macharia .Cont…. Receiving  The purchasing officer receives the goods ensuring that quality and the quantity and the price is as agreed. Buying  The purchasing officer enters into the contract with the selected supplies of food commodities.

Feedback  He receives a feedback confirming the suitability of items purchased. Recording  He ensures that items received are recorded and stored properly. Murage Macharia . Issuing  He ensures that items are issued to the user units as required.Cont….

VOLUME → determine what food and beverage are FORECAST required. ↓ → determine the choice available for MENU customers and food and beverage quality ↓ standard.Purchasing in Food and Beverage Control Cycle POLICY → shows what the market is aimed at. ↓ Murage Macharia .

↓ → Quantity and quality inspection.Cont… PURCHASING → Here the selection of the supplies and the methods of purchasing are determined. stock records and ISSUING pricing of issues ↓ Murage Macharia . RECEIVING ↓ STORING & → Storage requirement.

PRODUCTION → Preparation and processing. ↓ → Provision of acceptable meals and drinks SELLING at correct selling prices.Cont…. Murage Macharia . ↓ CONTROL → Involves the provision of report assessing the final result and corrective actions if there are any.

NB//  in large establishment the purchasing officer is involved with large purchase and therefore it is important that the right staff is employed to run the department. in a hospital the purchasing may be the responsibility of a senior purchasing officer or senior supplier’s officer. In small restaurant and canteens the chef may do all the buying whereas in large hotel all the buying is done by the purchasing officer. Murage Macharia .Cont…. In school or college all the purchasing may be carried out by the bursar who buys all the items for the institute.

 Responsible for finding cheaper and better sources of supplies and as well as new substitute materials.  Efficient operation and control of the purchasing officer. Murage Macharia .Duties of the Purchasing Officer The duties may be inevitable varying from one establishment to another and will usually include the following. the goods received dept the stores and the cellar.  The purchasing of all food and beverage and ensuring of continuity of supplies.

restaurant unit. accounts office to ensure prompt payment for goods received. Murage Macharia .g. housekeeping unit.Cont…. bar unit.  Responsible for reporting to the management on the activities of the department.  Maintaining good liasone with the user unit e. catering unit. control unit.  Responsible for searching in relation of the requirement of the establishment.

 Contract Purchasing  Periodic Purchasing  Purchasing by Daily Quotation Sheet  Purchasing by Cash and Carrying Murage Macharia .Methods of Purchasing An establishment should select the methods of purchasing which is both economical and efficient an establishment may use any of the following methods or a combination of both.

sugar. flour bread.Contract Purchasing In contract purchasing the establishment enters into a contract with a supplier for the items to be supplied.g. A contract is a legal document and which must have all the relevant clauses as follows. This method is suitable for items with stable prices e. Murage Macharia . salt normally a short term contract is usually for six months. meat. ii) The estimate quantities as accurately as possible. i) The period of contract. A contract will be for three months and long term contract and usually for six months.

iii) The reservation of the establishment to divide a contract if necessary between suppliers. Murage Macharia . vi) Power to purchase in default – should a supplier not be able to supply a commodity the establishment reserves the right to purchase the commodity from another source and any expense incurred or difference is normally changed by a supplier under a contract. iv) The purchase specification for the item concerned. v) The removal of any rejected food to be undertaken by the suppliers.Cont….

Cont…. viii)Prevention against corruption – The establishment reserves the right to cancel the contract should there be any unethical practices e. vii) Indemnity against damage – The supplier should be responsible for the damage property. ix) The place of delivery must be considered so that the products or goods are delivered at the correct place and the right time. bribery of any member of the staff.g. Murage Macharia .

xii) Service of notice to break the contract – here the period of time to be given by either party to be specified and to who notice is to be served. x) Invoices to be supplied within a specific time after delivery has taken place.Cont…. Murage Macharia . xi) Payment of invoices information to be given to the supplier as to when the payment will be made.

Murage Macharia . It is suitable for non-perishable goods e.g. salt.Periodic Purchasing  This is purchasing by weekly or fortnight. flour. cereals soaps etc. sugar. quotation sheets requirement for a given period are estimated and ordered. The quantity ordered will be determined by among other considerations storage space available.

This method is suitable for perishable goods to ensure freshness.Purchasing by Daily Quotation Sheet  Orders are placed as required on a day to day basis. Murage Macharia .

 Free to select the best products. This way the establishment takes the advantage of:  Competitive prices being offered.Purchasing by Cash and Carrying Within the opening of many supermarkets and uchumi offering goods at very reasonable prices some establishment opt to pay by cash for most of their goods from the supermarket most wholesalers also sale directly to the establishment at the wholesale price. Murage Macharia .

 It allows the opportunity to purchase small quantities of an item so that a new product or a new brand may be sampled with minimum of cost.Cont…. trade discounts and terms of payment must be negotiated. In cash and carry we can also buy from the warehouses at reduced prices. For effective purchasing the following factors must be considered. Murage Macharia .  The Price The buyer must explore all possible suppliers offering the most economical prices.

i) The initiation of a request to purchase goods by an authorized member of staff such as the head chefs. head barman or restaurant manager. Murage Macharia .The Purchasing Procedure There are various stages in the purchasing procedure. iii) Entering into a contract with the firm selected this may be by telephone for perishable items or writing on a detailed contract form. ii) The determination of the source of supply from which the goods are to be purchased and the price to be paid.

Cont…. Murage Macharia . iv) Obtaining a satisfactory delivery performance from the supplier with regard to time. date and place of delivery. v) The acceptance of goods ordered and the transfer to the ordering department or to the store or cellar.

the supplier should be selected from these with whom business has been done before as standards of goods obtained and service ordered will be known. It is necessary to check the economic quantity to be purchased by reference to the existing shock of the volume focused. The first stage of that of entering into a form of a contract with a supplier. 1. Murage Macharia .The Selection of a Supplier On receipt of an authorized requisition form.

Murage Macharia . Supplier is selected from (i) or (ii) recommended to the purchasing officer by a fellow purchasing officer himself or a good standard.Cont…. 2. The basic information required by a new supplier would include. The new supplier may become available as a result of an approach by the purchasing officer himself or a supplier representative.

 Range of products that can supply. The basic information required by a new supplier would include.  Referees Murage Macharia . a) Full details of the firm.  Name of their bank.Cont….  The address of the head office.

e) Supplier rating – The third method of selection is based on the suppliers Information of the other customers of their products.Cont…. this means that the supplier offers the supplies to other people. c) Must have samples of products for tasting and the sample should be free d) To visit to a new firm is necessary because here the supplier must know the size of the company its storage facilities and transport and also attitude of firm to a new customer. b) Printed copies of recent price list. Murage Macharia .

the best suppliers is the one who provides the firm with the most efficient service with rearguard to quantity. Murage Macharia . The total value of goods delivered by each supplier ii. The number of items rejected and with their values. quality. price and delivery of performance. What often is not ready available but is necessary to further evaluate the supplier and record on: i. performance if possible compare suppliers of the same group commodities as they have similar problems as regards the market conditions. 3.Cont….

iii. Any late delivery of goods.Cont…. The percentage value of goods rejected. Murage Macharia . This information can be used to make supplier aware of this poor performance and also can be used by the receiving department in that they will be aware of the supplier whose goods will need a closer inspection. iv.

Standards and selling money by buying the less expensive brands for ingredients whenever possible. The main sources of supply of beverages are: Murage Macharia .The Purchasing of beverages It is similar in many ways to the purchasing of food that is buying the best possible product of the establishment.

.Cont….  Wine Shippers These are firms that buy wine in the country of origin and supervise the shipment of it the country in which it will be sold.  Cash and Carry You can also buy wines from the supermarket. It offers a limited range of wines.  Wholesalers They are either independent companies or subsidiary companies of a large breweries. spirits beers at reasonable prices. Murage Macharia .