BUS606: Operations and Supply Chain Management

The major goal of the procurement process is to assure the availability of food and supplies in the quantity and quality consistent with operational standards at the most favorable price.

The purchasing process is an essential part of every food service operation. All competent cooks should be skilled in buying the appropriate ingredients, in accurate amounts, at the right time, and at the best price. Every kitchen operation has different purchasing procedures. But there is one rule that should always be followed:

• Buy only as much as it is anticipated will be needed until the next delivery.

This will ensure that foods stay fresh and will create a high inventory turnover. All foods deteriorate in time, some more quickly than others. It is the job of the purchaser to ensure that only those quantities that will be used immediately or in the near future are purchased.

The quality of the food and materials purchased is a major factor in determining the quality of the menu served in any foodservice operation. Food items can be purchased in many stages of preparation from raw to ready-to-serve. The food buyer must purchase the appropriate market form to meet the menu requirements and operation's quality standards.

Food and materials are a major expense in the restaurant or foodservice department's budget. To meet budgetary goals, a foodservice operation must have a well-organized purchasing program that provides a complete supply of food items, in the amounts needed, at a fair price.

Purchasing is defined as the determination of needs and the placement of the orders with suppliers. The purchasing process can be divided into two activities: buying and ordering. Buying involves decisions regarding where to place orders on the basis of quality, price, and service. Buying is a management function. Therefore, the foodservice manager or director usually assumes responsibility for deciding on the suppliers from which to purchase food and supplies. Ordering is the determination of the quality and quantity of food and supplies required to satisfy menu requirements, at a price within budgetary guidelines. Ordering is usually a supervisory function, and a foodservice supervisor is often given responsibility for ordering. Ordering may also be done by a skilled employee such as an experienced cook, especially in smaller operations.

The individuals responsible for ordering must be familiar with menu requirements; the quantities of food needed; market forms of food; grades and standards; seasons for foods; the food marketing system; and reliable sources of market information. In addition, a food buyer must have some knowledge and understanding of legal responsibilities and ethical practices. Sound business principles and well-stated purchasing policies are the foundation of a good purchasing program. Fairness, honesty, and trust between the food buyer and the supplier are essential to a good working relationship.

The customer and the supplier depend on each other. The foodservice cannot operate without the merchandise, and the supplier must have a market for his goods. Therefore, a satisfactory "deal" is one that benefits both parties.

The customer, however, needs more than just the product offered by the supplier: (s)he needs the supplier's expertise and his/her reliable service. To ensure himself/herself the benefits of the buyer/supplier relationship, the buyer should try to be a valued customer. Reliable vendors will always try to protect their valued customers by extending them with the best possible quality, price, and service.