PURCHASING

It is defined as a function concerned with search, selection, purchase, receipt,

storage and final use of commodity in accordance with the rated policy of
establishment. Purchasing function should be managed carefully, otherwise it
creates problem which leads to unsatisfactory level of profit and dissatisfy
customers with no specification of commodities.

PROCEEDURE

Requisition/Indent H.O.D Authorized.

Selection of source List of vendors

Contact Quotations/Tenders

Order Best Bidder

Receipt Credit memos

Issue Respective Dept.

 THE IMPORTANCE OF THE PURCHASING FUNCTION

POLICY Determines what market segment is aimed at.

Determines price to be paid for purchases and
prices that items are to be sold at. Determines
the quality to be purchased.

MENU Determines the choice of items available to

customers.

VOLUME FORECASTING Determines the quantity to be purchased.

REQUISITION Indicates the particular requirements of each

outlets

Selects suppliers, contracts, quantities to be

purchased, specifications for individual items.
F PURCHASE Ensures continuity of supply
E

E
Inspects for quantity and quality
D RECEIVING

B
Correct storage for each item. Maintenance of
A stock records, security of items. Correct stock
levels, Correct issuing
C STORES

PRODUTION Preparation of items purchased

 SELLING Provision of satisfactory products at the
correct. Selling Price/cost.

CONTROL The measurement of performance of all

outlets involved. Feedback of information to
management

The Duties of Purchasing Manger are:-

1. Responsibility for the management of purchase office, the receiving, storing
and cellar areas.
2. The purchasing of all commodities.
3. Ensuring continuity of supply of all items to the user department.
4. Finding cheaper and efficient source of supply.
5. Keeping up to date the markets and evaluating new products.
6. Research into products, market and prices.
7. Coordinating with the user department to standardize the commodity and
thereby reducing stock level.
8. Coordinating with product, control, accounts and department.
9. Reporting to the senior manager.

What needs to be emphasized to senior management is the importance to an

organization of an efficient purchasing department in that it should be looked at
more as a profit oriented department.
PURCHASING PROCEDURE

1. A requisition from the authorized member of staff informing the purchasing

department the low levels of items.
2. The selection of the source of supply.
3. Entering into contract with the supplier over the phone or in writing and
negotiating the price to be paid and the satisfactory delivering performance with
reference to time, date and place of delivery.
4. The acceptance of goods ordered and adjustment of any discrepancy in quality
or quantity of goods delivered.
5. Transfer of commodities to the ordering department or to the stores.

STANDARD PURCHASE (S.P.S) SPECIFICATIONS

S.P.S is a concise description of the quality, size and weight or count factors
desired for a commodity.

Details

1. Name and Definition

2. Grade/Quality
3. Unit of Measurement (u.o.m: Kg, No,Lt, Kg)
4. Unit against price quote
5. Procurement time lag/lead
6. Special note.
Uses/Merits

1. Buying standard ............. consistency

2. Systemize ordering procedure
3. Checking process easy.
4. An "AIDE-MEMORIZE"
P&O CATERERS LIMITED

249 Queers Road, London SE1 4PX

Tel: 01-546 5555

STANDARD PURCHASE SPECIFICATION NO.26

Commodity : Fresh tomatoes

Size : 50 gms/2 or each

Quality : Firm, well formed, good red colour

Origin : English preferred

Weight : 6 kg/12 lb net per box

Count : 90-100 per box

Quote : Per box

Delivery : Day following order

Date : 31 March 198_

Standard purchase specification for fresh-tomatoes

 PURCHASE REQUISITION

Suggested ........................................... Date Submitted .............................................

Vendor(s) .......................................... Date Required .............................................

and ........................................... Dept of Org .............................................

Ordering .......................................... Requested by ..............................................

............................................. Dept. Head ...............................................

Quantity Distr ibution Please order item(s) listed Est Est- total
below
Unit
price
Dept A/C

Sd

Purchase Manager

A good purchasing manager should keep following points in

mind

How Various Commodities are Marketed and Handled. Food and food products
available in the market undergo a constant change. New varieties of fresh fruits
and vegetables are constantly researched to improve size, colour, texture, and
flavour e.g. appearance of new varieties of citrus fruits and mangoes, different
sizes of chilies, cabbage, tomatoes, potatoes, and so on.

Fresh food is available in forms as desired. E.g. meat can be purchased as chops,
boneless, leg of mutton for roast, mince etc. Fish may be bought whole or filleted
as required. Freezing technology has added a number of possibilities to the range
available by capturing the freshness and qualities of foods at their different stages
of growth and preparation. Instant foods, mixes, texturised protein products,
dehydrated, canned, freeze dried, partly cooked and ready to eat foods, have all
become familiar. In addition there is a wide range of ingredients offered in the
form of syrups, spices, flavouring, food colours, stabilizers and preservatives to
enhance the sensory and keeping qualities of food.

What Food and Food Products are Available in Market in Particular Season.
Fresh foods which have to be transported long distances reach the consumer
after a lapse of few days. It is therefore good policy to use fresh produce
especially meat, fish, poultry, and vegetables as soon as they are received in a
food service establishment. Different foods are packed and handled in different
ways. For e.g. radishes and carrots are packed in jute bags in standard weights
and transported while cabbages or cauliflower may simply be stacked one top on
other directly in a truck. On their receipt in markets, vendors or retailers
sometimes scrape carrots and radishes and wash them in water before arranging
them in their stall or shops for sale. Such handling improves the sheen, colour and
smoothness of the vegetables and attracts buyers. But such treatment reduces
the keeping qualities. Appearance should not be the only characteristic on which
to base one’s decisions regarding food purchasing. Quality characteristics of
different foods must be kept in mind.

Prices of Food Fluctuate from Season to Season and also in response to external
factors like famines, droughts, customer demand, factory closures and so on. An
occasional visit to markets – wholesale and retail, is good policy instead of
depending entirely on price quotations and qualities offered by the suppliers.
Suppliers tend to offer products which are most profitable to them within their
conditions of supply and the best quality may never reach an establishment
unless the supplier is aware of the buyers’ knowledge. Knowing market prices also
helps to make use of seasons of glut in terms of buying in quantities which carry
‘cash discounts’. Request price lists as frequently as possible and compare prices
continually to make sure that you buy at a good market price.

Size and Types of Packs for Bulk Purchasing – Foods of the same quality come in
many sizes and types of packs. For e.g. rice may be purchased in gunny bags of 25
kg each or polybags of 10 kg or 5 kg polypacks of 1 kg net weight. Canned foods
come in different sizes containing different net weights of foods. Depending on
their requirements of individual food service, the appropriate sizes will need to be
purchased.

Quantities to be Bought of Each Commodity at a Time. The buying quantities will

depend on a number of factors – degree of perishability of the food and thus its
keeping quality, rate of use in the menus of establishment, frequency of deliveries
possible and amount of storage necessary for different foods.

Suppliers and their Terms of Supply. Very often suppliers agree to fixed prices of
a range of items over a period of time and have no objections to supplying
immediately on demand. Others may be rigid on the mode of delivery in which
case stocks have to be maintained with the establishment for some commodities
the establishment may request for items straight from a farm situated close to
the establishment. In that case the price advantage may have to be weighed
against storage space and immediate usefulness to capture the fresh quality
characteristics in prepared meals. Explore all possible suppliers.

Available kinds of Storage Space. The amounts of space available for storing
foods in an establishment will determine the amounts in terms of pack sizes and
numbers to be purchased. The kinds of storages such as cold or freezer storage at
hand will also affect the range of products that can be bought and stored. On this
will depend the number of trips to the market or number of deliveries per week
or month.

Keep the Number of Supplier to a minimum. At the same time have at least two
suppliers for every group of commodities when possible.

Deliveries must all be checked against the orders given for quantity, quality and
price. If any goods are delivered below an acceptable standard they must be
returned either for replacement or credit.
Containers can account for large sums of money. Ensure that all the containers
are correctly stored, returned to the suppliers and proper credit given.

All invoices must be checked for quantities and prices. All statements must be
checked against invoices and passed swiftly to the office so that payment may be
made in time to ensure maximum discount on the purchases.

Keep up to date trade catalogues, visit trade exhibitions, survey new equipment
and continually review the space, services and systems in use in order to explore
possible avenues of increased efficiency.

THE SELECTION OF A SUPPLIER

A supplier can be easily selected from amongst those that the buyer has
previously purchased from in that the quality of goods received price and service
offered would be known when seeking a new supplier caution must be exercised
and detailed enquiries made to cover at least the following points:

a) Full details of the firm and the range of items they are selling.
b) Copies of recent prices lists.
c) Details of trading terms
d) Details of other customers.
e) Samples of products.

Ideally a visit should be made to any potential supplier to see the size of his
company, the full range of products, the size of processing and storage facilities,
the size of their transport fleet and to meet members of the management team.
All of this takes up valuable time for the buyer, but is essential in order to obtain a
supplier with whom it is possible to have a satisfactory business relationship, who
will stock the quality and quantity of commodities he needs and who is able to
offer a satisfactory performance within a suitable price range. This procedure
would convince the supplier of the professionalism of the purchasing officer.

Having selected suppliers and placed them on an ‘Approved Supplier List’, and
after having purchased from them, it is necessary to periodically evaluate their
performance using a rating system. There are three main performance criteria
which may be used in a rating system – price, quality and delivery.

Systematic Ordering Procedures:

The complexity of the purchasing system will depend on the size and type of
organization and established management policies. Procedures should be as
simple as possible, with record keeping and paper work limited to those essential
for control and communication.

Good purchasing system include the use of specification and appropriate buying
method, a systematic ordering schedule, and maintenance of an accurate flow of
goods to meet production requirements. A system of communication needs from
the production areas and the store room to the buyer is essential. Establishing a
minimum and maximum stock level provides a means of alerting the buyer to
needs, particularly regarding canned and frozen foods and staples.

Frequency of purchase and the amount of food purchased at one time is fairly
dependent on the amount of money at hand, the method of buying, frequency of
deliveries, and the space for inventory stock. With adequate and suitable storage,
the purchase of staples may vary from a 2 to 6 month supply, with perishables
weekly and/or daily.
A well organized purchasing routine will save time, eliminate error and give
assurance that the right food will be at the right place when needed.

PURCHASING METHODS
Every establishment has its own purchasing policies according to its specific needs
for different types of foods. The methods of purchasing depends largely on the
quantities of the various items to be purchased at one time.

When purchasing food it is necessary to consider what true cost of the item will
be in relation to what the printed price from the supplier states. The true cost and
calculation has to take into account invoice price less discount, storage cost of the
item and production cost. For any organization its profitable to buy products that
are less in cost and upto their product specification. It is important for the buyer
to have accurate figures of consumption of the items based on which he can
decide his buying methods.

The following are the seven purchasing methods-

a) Purchasing by Contract – There are two types of contract purchasing – specific

period contract quantity period contract. Specific period contract determines the
source of supply and the price of goods for a stated period from 6 months to 1
year. This reduces the labour and time and ordering to a minimum and it has the
advantage to assist in budgeting and pricing. Quantity contract ensures the
continuity of the supply at a specified rate over a particular period. This reflects
on the price of the products that are being sold. A contract is basically into two
parts – the general conditions and the specific conditions. The general conditions
include period of contract, delivery point, mode of payment, sample of
commodity etc. the specific conditions on the other hand is nothing but the detail
specification of the product concerned.

b) Purchasing by Dealing Market – It is usually done for perishable goods on daily

basis or it can be purchased from the supplier based on the need of the hotel, to
assist the actual requirements. This has to be done on a regular basis by the
concerned department and hand it over to the purchasing department.
c) Purchasing by Weekly/Fortnight Occasion – It is used to purchase grocery
product where delivery can take place weekly wise. It is mostly on the line of daily
purchase. The product which are being purchased has to be on the line of product
specification.

d) Purchasing by Cash & Carry – Is applicable to medium and small

establishments whose requirements are not large enough to go into contract.
Cash and carry shops are situated mostly in small towns like supermarkets. The
advantages of these are – most of the catering establishments are situated close
to cash & carry; small or large quantities may be purchased at competitive price;
the customers can see what they are buying against the price list/category. The
customers can use the service of cash & carry any number of times he wants.

e) Purchasing by Paid Reserve – This method is used when it is necessary to

ensure continuity of supply. In this method the establishment buys in advance
large quantity of commodity to cover the need of several months ahead. The
establishment gives the requisition to the supplier on a weekly basis who would
supply as per requirements.

f) Purchasing by Total Supply – This is a offer made by the supplier to the hotel in
which the supplier supplies all commodities to the hotel. The advantage in this is
the hoteliers have less negotiation, less paper work and few deliveries. But the
disadvantage might be the of the price which might not be competitive.
g) Purchasing by Cost Plus Method – In this method the agrees to pay the
approved supplier exactly the same price the supplier paid for it, plus an agreed
percentage. This percentage might include cost of handling delivery charges and
profit.
 KITCHEN STEWARDING & GARBAGE DISPOSAL

Kitchen stewarding department is the very important part of the hotel industry
but is often a neglected and underestimated area of operations. However, it is
realized that how important a section it is, only when in any catering
organizations delays are caused in service and production due to uncleaned
utensils, unwashed plates, crockery and cutlery for service and for kitchen
purpose. Poor attention paid to this section often causes operationaldelays.
Which brings down the efficiency of the entire F & B department. This may lead to
guest dissatisfaction, decrease of sale, increase in budget for service equipment
and a lowering of departmental profits. Each and every department is
interconnected therefore in a successful and complete operation the stewarding
department plays an equally important role in providing clean and hygienic
equipments on time. In this operation work is divided into 2 parts one is cleaning
of kitchen and it’s equipment and back of service area.
IMPORTANCE OF KITCHEN STEWARDING
The department is primarily concerned with the storage, maintenance, cleanliness
and issue of cutlery, crockery, hollowware, chinaware, glassware to the
restaurants and kitchens.
The main duties to be carried out by the Kitchen stewarding dept. personnel is
as follows:
1. Handling stocks of small operating equipments like cutlery, crockery, glassware,
kitchen equipment etc.
2. Cleaning and washing of all such operating equipments.
3. Washing and cleaning of entire kitchen and f & B department.
4. Coordinating the securing of kitchen equipment with the maintenance
department.
5. Planning the requirement list and purchasing orders for all small operating
6. equipment and helping the F & B manager with budget in this area.
7. Garbage clearance operations from all F & B areas.
8. Ordering clearance operations from all F & B areas.
9. Handling polishing & buffing of silver ware.
10. Minimizing the breakages and losses.
11. Kitchen pot washing operations.
12. Kitchen stewarding is also responsible for pest control activity of the kitchen.
13. It procures, installs, and service gas connections and coal supply for cooking.
The department would ideally have a large store for kitchen and service
equipment, dishwashers and pot washing section

Hierarchy & Staffing of Kitchen Stewarding Department.

F & B Manager
Kitchen Stewarding Manager
Asst Stewarding Manager
(For Kitchen and F&B Service)
Overseers - Kitchen dept Overseers - F&B dept

Utility Workers Pot Washers Dish Washers

Depending on the size and type of establishment the no. and brigade of
stewarding department varies

KITCHEN STEWARDING MANAGER is responsible for planning, organizing,

directing and controlling the stewarding activity. He would control the kitchen
stewarding stores and ensure that the kitchens and the restaurants get their
needs smoothly.
OVERSEERS this is a supervisory level responsible for the shift. Stewarding
activity is a 24 hr activity in a busy hotel.
UTILITY WORKERS: these are the cleaning brigade, who clean kitchens and
equipment and do other heavy work.
DISH WASHERS: they operate the dishwashing machine that cleans allservice
ware.
POT WASHER: they clean large pots and cooking utensils of the kitchen using jet
water sprays.
KITCHEN PORTER: is the title given by small independent hotels to utility workers
who do multi tasks.

CLEANING OPERATIONS
•There are two kinds of cleaning ---1) Daily cleaning 2) Special or Spring cleaning
• Stewarding manager make a definite program with one overseer for the above
cleaning.

Cleaning of the above service areas is accomplished by the following equipments

and required staff and as per the drafted program
1. Liquid detergent all purpose
2. Abrasive powder like Vim powder
3. Chlorine base detergent like Clorax
4. Phenyl ( anti bacterial agent)
5. D’spot ( for removing carbon formation—Degreasing)
6. D’scale ( for removing scales fromboilers and dish washing machines)
7. Mops
8. Rubber squeezers
9. Dusters
10. Scorch pads
11. Glass brushes
12. Hard brushes
13. Steel scrubbers
14. Sponge/ Plastic scrubbers etc
EQUIPMENTS FOUND IN STEWARDING DEPT
1. Dish washing machine
2. Glass washing machine
3. Neptune high pressure machine (120 lb/sq inch)
4. S.S. trolleys
5. Glass trolleys
6. Glass racks
7. Burnishing; Silver plating machine ( for EPNS; silverware)
8. Hose pipe
9. Hot water injection type cleaning machine
10. Three sinks unit or chambers.

Garbage Disposal
Kitchen stewarding department is 24 hrs Operational. The staff is more in number
for night shifts for floor and for equipment more in the day time. Every food
service operations has different requirements for waste disposal and many
factors must be evaluated before designing a system to handle this function
which depends upon amount of waste generated, type of waste, cost of
destroying waste and dumping frequency of paper.
Types of Hotel waste: Hotel waste comprises of two components,
1.Biodegradable (Wet) waste: The wet waste comprises of food, vegetable and
non veg waste
2.Non biodegradable (Dry) waste: the dry waste comprises of plastic bottles,
papers, plastic wrappers, etc.
The following processes can be followed for garbage disposal:
1. Compaction: The use of compaction is usually considered where large volumes
of disposables are to be handed. Compacters reduce the volume of waste so that
it can he handled in smaller quantities. The weight of the compacted waste
should be less than 50 pounds (23 Kg.)
2. Incineration: It can be used only if the amount of garbage which has to burned
is of a great volume and if it is economically viable while installing an incineration
machine in the department. The pollution ordinance should also be checked.
3. Grinding: Garbage grinding is generally allowed in areas in municipal sewage
system.
4. Pulping: Waste pulping creates a liquefied waste by using heavy duty grinders
with a recirculation water system. The liquefied waste is then passed through a
water extractor where it is reduced to a semidry pulp and then stored in bins.

LIAISON WITH FOOD SUPPLIERS

There are certain important factors involved in a successful working relationship

with food suppliers. Both parties have responsibilities that must be carried out to
ensure proper food safety and quality. Food-borne illness incidents, regardless of
the cause, have an impact on the reputation of caterers and suppliers’ business
will be lost. A good working relationship and knowledge of each other’s
responsibilities is a major help in avoiding such incidents.
Suppliers must be aware of what is expected of the product. They must also make
sure that the caterer is aware of any food safety limitations associated with the
product. These are usually stated on all labeling. Such statements may just simply
say ‘keep refrigerated’ or ‘keep frozen’, others might well include a graph or chart
of the projected shelf-life at different storage temperatures. The responsibility for
meeting these specifications is an important factor in a successful catering
operation.

FOOD PURCHASING
Once a menu is planned, a number of activities must occur to bring it into reality.
One of the first and most important stages is to purchase and receive the
materials needed to produce the menu items. Skillful purchasing with good
receiving can do much to maximize the results of a good menu. There are six
important steps to remember:

 know the market;

 design the purchase procedures;
 determine purchasing needs;
 receive and check the goods;
 establish and use specifications;
 evaluate the purchasing task

Knowing the market

Since markets vary considerably, to do a good job of purchasing a buyer must
know the
Characteristics of each market
A market is a place in which ownership of commodity changes from one person to
another.
This could occur using the telephone, on a street corner, in a retail or wholesale
establishment or at an auction.
It is important that a food and beverage purchaser has knowledge of the items to
be purchased, such as:
 where they are grown;
 seasons of production;
 approximate costs;
 conditions of supply and demand;
 laws and regulations governing the market and the products;
 marketing agents and their services;
 processing;
 storage requirements
 commodity and product, class and grade

The buyer
This is the key person who makes decisions regarding quality, amounts, price,
what will satisfy the customers but also make a profit. The wisdom of the buyer’s
decisions will be reflected in the success or failure of the operation. The buyer
must not only be knowledgeable about the products, but must have the
necessary skills required in dealing with sales people, suppliers and other market
agents. The buyer must be prepared for hard and often aggressive negotiations.
The responsibility for buying varies from company to company according to the
size and management policy. Buying may be the responsibility of the chef,
manager, storekeeper, buyer or buying department.
A buyer must have knowledge of the internal organisation of the company,
especially the operational needs and to be able to obtain the product needs at a
competitive price. Buyers must also acquaint themselves with the procedures of
production and how these items are going to be used in the production
operations, in order that the right item is purchased. For example, the item
required may not always have to be of prime quality, for example tomatoes for
soups and sauces.
A buyer must also be able to make good use of market conditions. For example, if
there is a glut of fresh salmon at low cost, has the organisation the facility to
make use of the extra salmon purchases? Is there sufficient freezer space? Can
the chef make use of salmon, by creating a demand on the menu?

Buying methods
These depend on the type of market and the kind of operation. Purchasing
procedures are usually formal or informal. Both have advantages and
disadvantages. Informal methods are suitable for casual buying, where the
amount involved is not large and speed and simplicity are desirable. Formal
contracts are best for large contracts for commodities purchased over a long
period of time. Prices do not vary much during a year, once the basic price has
been established. Prices and supply tend to fluctuate with informal methods.

INFORMAL BUYING
This usually involves oral negotiations, talking directly to sales people, face to face
or using the telephone. Informal methods vary according to market conditions.

FORMAL BUYING
Known as competitive buying, formal buying involves giving suppliers written
specifications and quantity needs. Negotiations are normally written.

Selecting suppliers
Selecting suppliers is important in the purchasing process. Firstly consider how a
supplier will be able to meet the needs of your operation. Consider:

 Price
 Delivery
 Quality / Standards.

Information on suppliers can be obtained from other purchasers. Visits to

suppliers’ establishments are to be encouraged. When interviewing prospective
suppliers, you need to question how reliable a supplier will be under competition
and how stable under varying market conditions.
Principles of purchasing
A menu dictates an operation’s needs Based on this the buyer searches for a
market that can supply the company. After the right market is located, the various
products available that may meet the needs are then investigated. The right
product must be obtained to meet the need and give the right quality desired by
the establishment. Other factors that might affect production needs include:

 type and image of the establishment;

 style of operation and system of service;
 occasion for which the item is needed;
 amount of storage available (dry, refrigerated or frozen);
 finance available and supply policies of the organisation;
 availability, seasonability, price trends and supply

The skill of the employees, catering assistants, chefs, must also be taken into
account as well as condition and the processing method; the ability of the product
to produce the item or dish required; the storage life of the product.

THREE TYPES OF NEEDS

• Perishable: fresh fruit and vegetables, dairy products, meat and fish; prices and
suppliers may vary; informal needs of buying are frequently used; perishables
should be purchased to meet menu needs for a short period only.

• Staple: supplies canned, bottled, dehydrated, frozen products; formal or

informal purchasing may be used; because items are staple and can be easily
stored, bid buying is frequently used to take advantage of quantity price
purchasing.

• Daily use needs: daily use or contract items are delivered frequently on par
stock basis; stocks are kept up to the desired level and supply is automatic;
suppliers may be daily, several times a week, weekly or less often; most items are
perishable, therefore supplies must not be excessive but only sufficient to get
through to the next delivery.

WHAT QUANTITY AND QUALITY

Determining quantity and quality of items to be purchased is important. This is
based on the operational needs. The buyer must be informed by the chef or other
members of the production team of the products needed. The chef and his or her
team must establish the quality and they should be required to inspect the goods
on arrival. The buyer with this information then checks out the market and looks
for the best quality and best price. Delivery arrangements and other factors will
be handled by the buyer. In smaller establishments the chef may also be the
buyer. When considering the quantity needed, certain factors should be known:

 the number of people to be served in a given period;

 the sales history;
 portion sizes (this is determined from yield testing a standard portion control
list drawn up by the chef and management teams)

Buyers need to know production, often to be able to decide how many portions a
given size may yield. He or she must also understand the various yields. Cooking
shrinkage may vary causing problems in portion control and yield.
The chef must inform the buyer of quantities. The buyer must be aware also of
different packaging sizes, such as jars, bottles, cans and the yield from each
package. Grades, styles, appearance, composition, varieties, quality factors must
be indicated, such as:

 Colour
 Bruising
 texture
 irregular shape
 size
 maturity
 absence of defects

Quality standards should be established by the chef and management team when
the menu is planned. Menus and recipes may be developed using standardised
recipes which directly relate to the buying procedure and standard purchasing
specifications.

Buying tips
The following is a list of suggestions to assist the buyer:
 Acquire, and keep up to date, a sound knowledge of all commodities, both
fresh and convenience, to be purchased.
 Be aware of the different types and qualities of each commodity that is
available.
 When buying fresh commodities, be aware of part-prepared and ready-
prepared items available on the market.
 Keep a sharp eye on price variations. Buy at the best price to ensure the
required quality and also an economic yield. The cheapest item may prove to be
the most expensive if waste is excessive
 Organise an efficient system of ordering with copies of all orders kept for cross
checking, whether orders are given in writing, verbally or by telephone.
 Compare purchasing by retail, wholesale and contract procedures to ensure the
best method is selected for your own particular organisation.
 Explore all possible suppliers: local or markets, town or country, small or large.
 Keep the number of suppliers to a minimum. At the same time have at least
two suppliers for every group of commodities, when possible. The principle of
having competition for the caterer’s business is sound.
 Issue all orders to suppliers fairly, allowing sufficient time for the order to be
implemented efficiently.
 Request price lists as frequently as possible and compare prices continually to
make sure that you buy at a good market price.
 Buy perishable goods when they are in full season as this gives the best value at
the cheapest price. To help with the purchasing of the correct quantities, it is
useful to compile a purchasing chart for 100 covers from which items can be
divided or multiplied according to requirement. Indication of quality standards
can also be inserted in a chart of this kind.
 Deliveries must all be checked against the orders given for quantity, quality and
price. If any goods delivered are below an acceptable standard they must be
returned either for replacement or credit.
 Containers can account for large sums of money. Ensure that all the containers
are correctly stored, returned to the suppliers and the proper credit given.
 All invoices must be checked for quantities and prices.
 All statements must be checked against invoices and passed swiftly to the office
so that payment may be made in time to ensure maximum discount on the
purchases.
 Foster good relations with trade representatives because much useful up-to-
date information can be gained from them.
 Keep up-to-date trade catalogues, visit trade exhibitions, survey new
equipment and continually review the space, services and systems in use in order
to explore possible avenues of increased efficiency.
 Organise a testing panel occasionally in order to keep up to date with new
commodities and new products coming on to the market.

METHODS OF PURCHASING
There are three main methods for buying, each depending on the size and volume
of the business.
 The primary market: raw materials may be purchased at the source of supply,
the grower, producer or manufacturer, or from central markets such as Smithfield
(meat), Nine Elms (fruit and vegetables) or Billingsgate (fish) in London. Some
establishments or large organisations will have a buyer who will buy directly from
the primary markets. Also, a number of smaller establishments may adopt this
method for some of their needs (the chef patron may buy his fish, meat and
vegetables directly from the market).
 The secondary market: goods are bought wholesale from a distributor or
middle man; the catering establishment will pay wholesale prices and obtain
possible discounts.
 The tertiary market: the retail or cash and carry warehouse is a method suitable
for smaller companies. A current pass obtained from the warehouse is required in
order to gain access. This method also requires the user to have his or her own
transport. Some cash and carry organisations require a VAT number before they
will issue an authorised card. It is important to remember that there are added
costs:
1. running the vehicle and petrol used;
2. the person’s time for going to the warehouse
Cash and carry is often an impersonal way of buying as there is no staff to discuss
quality and prices.
Standard purchasing specifications
Standard purchasing specifications are documents which are drawn up for every
commodity describing exactly what is required for the establishment. These
standard purchasing specifications will assist with the formulation of standardised
recipes. A watertight specification is drawn up which, once approved, will be
referred to every time the item is delivered. It is a statement of various criteria
related to quality, grade, weight, size and method of preparation, if required, such
as washed and selected potatoes for baking. Other information given may be
variety, maturity, age, colour, shape, etc. A copy of standard specification is often
given to the supplier and the storekeepers who are left in no doubt as to what is
needed. These specifications assist in the costing and control procedures.

Commodities which can be specified include:

 Grown (primary): butchers meat; fresh fish; fresh fruit and vegetables; milk and
eggs.
 Manufactured (secondary): bakery goods; dairy products.
 Processed (tertiary): frozen foods including meat, fish and fruit and vegetables;
dried goods; canned goods.
It can be seen that any food product can have a specification attached to it.
However, the primary specifications focus on raw materials, ensuring the quality
of these commodities. Without quality at this level, a secondary or tertiary
specification is useless. For example, to specify a frozen apple pie, this product
would use:
 a primary specification for the apple;
 a secondary specification for the pastry;
 a tertiary specification for the process (freezing).

But no matter how good the secondary or tertiary specifications are, if the apples
used in the beginning are not of a very high quality, the whole product is not of a
good quality.

EXAMPLES OF STANDARD PURCHASING SPECIFICATION

Tomatoes
 Commodity: round tomatoes.
 Size: 50 g (2 oz) 47—57 mm diameter.
 Quality: firm, well formed, good red colour, with stalk attached.
 Origin: Dutch, available March—November.
 Class/grade: super class A.
 Weight: 6 kg (13 lb) net per box.
 Count: 90—100 per box.
 Quote: per box/tray.
 Packaging: loose in wooden tray, covered in plastic.
 Delivery: day following order.
 Storage: temperature 1O—130C (50—550F) at a relatively humidity of
75~80O/a.
 Note: avoid storage with cucumbers and aubergines.

EXTRACT FROM A PURCHASE SPECIFICATION

SCHEDULE B: SUPPLIER’S QUALITY AND PREPARATION SPECIFICATION

PRODUCT: BEEF AND VEAL

GENERAL:

1. All products supplied to Gardner Merchant Limited must comply with the
provisions of the Weights and Measures Act 1976 and 1985, Trade Descriptions
Act 1968, Food Act 1984 and any amendments that are enforced from time to
time.
2. No meat from cow (including that designated as ‘commercial’) or bull carcasses
will be supplied.
3. Cuts, joints and steaks of fresh beef are to be prepared from the chilled
unfrozen carcasses or primal cuts of ‘clean’ steers and heifers of English, Irish or
Scottish origin.* Beef of intervention storage and from imported chilled and
frozen meat can also be supplied if they originated from animals which
conformed to the standards of home killed graded beef.
4. No cuts from excessively lean or fat carcasses to be supplied.
5. Unfrozen beef carcasses and primal cuts from the hindquarter must be stored
at chilled temperatures for 7—10 days prior to preparation, to allow for
maturation.
6. Cuts, joints and steaks of veal are to be prepared from the chilled unfrozen
carcass of English or Dutch milk fed beasts.
7. Beef and veal other than that supplied frozen must be kept chilled (below 50C)
throughout preparation, storage and distribution.
8. Prepared cuts of chilled beef and veal that are supplied-frozen must be fully
frozen to a temperate of not higher than —1 80C by mechanical blast freezers.
Meat that has not been frozen by such means cannot be supplied to Gardner
Merchant Limited. The exception to this is stewing steak that has been frozen too
much higher temperatures to allow mechanical dicing.
9. Fresh beef and veal that has been designated as frozen must be delivered by
transport that has frozen storage capacity. The temperature of the meat must not
reach a value of more than 100C during distribution.
10. Meat purchased as frozen and then thawed for the preparation of joints,
steaks, mince or stewing steak, must not be refrozen.
11. Prepared cuts must be wrapped and sealed in polythene bags and delivered in
a rigid impervious receptacle or tray of good hygienic standard.
12. Suppliers of fresh beef and veal to Gardner Merchant must adhere to the
purchasing and Supply specification of Schedule D.
 FOOD STORAGE SYSTEMS

STORES

Storage involves arranging goods in specified areas earmarked for particular

materials. Till they are required for use by the production, service or other
departments. It consists of the complete process of receiving and handling
materials and checking them for quality and quantity against orders placed.

A clean, orderly food store run efficiently is essential in any catering

establishment for the following reason:
 Stocks of food can be kept at a suitable level, so eliminating the risk of running
out of any commodity.
 All food entering and leaving the stores can be properly checked, this helps to
prevent wastage.
 A check can be kept on the percentage profit of each department of the
establishment.

The planning of storage spaces depends on 3 basic factors:

 Nature of foods to be stored
 Quantities in which food are stored
 Length of time for which they are stored before use

LOCATION OF STORAGE SPACES – Storage spaces should be located as near the

point of use of the stored commodity as possible. Spaces should also be
accessible to roads so that deliveries are easily received without interference with
other organizational activities. Stores are best situated on the east or northeast
side of the building to prevent direct sunlight affecting the storage temperatures.
At the designing stage care has to be taken to ensure that the storage spaces are
not located over or near a boiler, have steam or hot water pipes running through
or under them, concealed or otherwise. Care is necessary to ensure that traffic to
and from stores does not interfere with kitchen or service activity. Storage spaces
need to be worked out according to the degree of perishability and the rate of
turnover of commodities to be stored. The planned arrangements in a store are
referred to as ‘functional storage’ the idea being to provide a facility which make s
ingredients available for use with the least possible delay.

THE STOREROOM – The storeroom is divided into 6 main areas: the receiving or
loading dock, liquor storage, dry food storage, the dairy and vegetable cooler, the
meat cooler and the freezer.

Receiving or loading dock is the first place where food stuffs and supplies are
stored. As the articles are unloaded from trucks, they are inspected to ensure that
the delivery order is complete and accurate. Each item is checked against the
order sheet to verify that the weight, size, and amount are correct. The price of
each item is also checked. If any item is damaged or spoiled it is sent back to
truck.
After foodstuffs have been received and inspected they are placed immediately in
the appropriate storage areas. New items are placed in the back of the storeroom
and on the bottom of each stack, and the older items are moved forward and to
the left. This process is called rotating the inventory and ensures that the items
that have been in storage the longest are used first.
Supplies of liquors, wines are kept in the liquor storage area. The dry storage area
is used to store items such as grains, spices, canned foods and dry packaged foods
such as pasta.
The dairy and vegetable cooler is a refrigerated, walk in space where dairy
products such as milk, butter and cheese are stored along with fresh produce
such as lettuce, tomatoes and celery.
The meat cooler is used to store meat, poultry and seafood that will be used
within one to three days. Meat that is not likely to be used within this time is kept
in the freezer.

Maintaining the proper temperature in the coolers and freezer is essential to

controlling food costs. For e.g. if milk is not stored properly, it will spoil after 3
days. Proper refrigeration can extend the shelf life to a week. Meat, dairy foods,
and produce can spoil quickly if the temperature is not maintained at the proper
level. Food loss due to spoilage is a significant factor in the F & B department.

STORAGE ACCOMMODATION – Foods are divided into groups for the purpose of
storage. Dry foods and perishable foods.
Dry foods include cereals, pulses, sugar, flour, bread, cakes, jams, pickles, & other
bottled foods, canned foods etc.
Perishable foods include meat, poultry, game, fish, dairy produce and fats,
vegetables and fruits.

TYPES OF STORAGE – There are basically two types of storages, dry and low
temperature storage. These are further sub divided according to temperatures
required as Perishable: meat, fish, poultry, milk and milk products, breads, cereals
or pulse flours, butter cream, cheese, fruits, vegetables and cooked food. Semi
Perishable: cereals, pulses, and their products, propped, flaked and dry roasted
cereals and pulses, roasted nuts and fried products, oil seeds, eggs, cakes, biscuits
and sweets, fruits and vegetables, partially or wholly prepared food. Non
Perishable: all preserved foods (canned, dried, pickled etc.), whole pulses, cereals,
legumes and millets. Dry roasted cereal products, sugars, hydrogenated fats, oils,
ghee, tea, coffee, cocoa, spices, condiments and essences.

DRY STORAGE: is a place for the storage of dry ingredients (usually stored at
Room Temperature of 20-25oC). The storage should be dry, cool, well ventilated,
and free from infestation of any kind in order to maintain the food in good
condition. The space for storages must be large enough to hold stocks of a
commodity for one to three months according to its frequency of use. Dry storage
is suitable for non-perishable and semi-perishable commodities.

Dry storage may be divided into

Food Store: This store is mainly for the storage of some semi perishable and all
non-perishable items.
Manner of storing food in dry storage:
Cereals (jute or polythene bags) stacked one on top of the other in a pile placed
on slatted platforms for air circulation. Placed in airtight tins. Cereal products (1Kg
to 25Kg packs) in airtight tins or bins with lid depending on the quantity.
Pulses and their products (1Kg to 20Kg//1Kg to 5Kg) can be stored in transparent
plastic jars with screw-able lids.
Nuts and fried products (polythene packs 1Kg to 5Kg) packs may be placed
together in airtight tins and opened only one Kg at a time. Once opened the items
should be transferred to transparent airtight jars, neatly labeled and stored.
Eggs (cardboard trays or cartons) stored such that these may be consumed
within a day or two or kept in cold store.
Preserved foods, cans, jars quantity of 24 and above supplied in cartons or store
out of cartons on shelves or racks. Spices & condiments, generally not more than
1Kg packs (polythene) or glass bottles with transparent labeled jars or tins.
Essences & flavourings (glass bottles), stored as such.
Food colours (small tins or glass bottles), as purchased.
Equipment Store: This involves storage of spare kitchen equipment, service
equipment etc.

Trash Store: This includes storage space for waste materials from all points of
production, such as delivery points, storage, service, and cleaning up areas.

LOW TEMPERATURE STORAGE: The principle underlying the designing of low

temperature storage is to maintain temperature at levels, which will inhibit the
growth of microorganisms, thereby preserving the food. The different types of
low temperature storages based on different temperature ranges, maintained for
the storage of semi-perishable and perishable food.

Refrigerated Storage: is a storage space planned and maintained at a temperature

between 0oC and 10oC. Such storages are necessary for maintaining the quality of
perishable foods for 3-5 days only, after which certain changes start taking place
in the foods due to enzymatic or microbial activity. It is good practice to keep
foods covered in refrigerated storage to prevent them from drying. This also
prevents odours from one food being picked by another. The space required for
refrigerated storage is determined by the volume of food produced and the type
of menus, along with the accuracy of forecasts of sales. If the menu involves the
use of many of perishable foods or forecasting is incorrect and plenty of food is
leftover then the space required will be greater than if the number of perishable
ingredients involved are few and all that is prepared is sold. Also, if the menu
items involve preparation methods such as soaking, fermenting and so on then
refrigerated space required is greater so that the degree of fermentation can be
controlled over time.

Cold Storage: is generally one in which the temperature is maintained between

0oC & 5oC, thereby reducing the enzyme activity to a minimum. Such storages are
also called chill rooms and can hold perishables for over a week and in case of
fruits and vegetables even upto a month depending on the stage of ripeness and
variety. Cold room is for meat where supplies can be kept frozen for long periods.
The best temperature for storing fresh meat poultry is 4oC-6oC with a controlled
humidity. Fish should have a separate cold room so that it does not affect other
foods. Chill rooms keep food cold without freezing and are suitable for those
foods requiring a consistent temperature such as dessert fruits, salads, and
cheese. Fresh fruits, salads and vegetables are best stored at temperature of 4oC–
6oC with a humidity that will not result in loss of water from the leaves causing
them to go limp. Green vegetables should be stored in dark area to prevent leaves
turning yellow. Certain fruits such as peaches and avocados are best stored at
10oC, dairy products are best stored at 2oC, and cheese requires different storage
temperature according to the type of cheese. Fats and oils are best stored at 4oC
-7oC otherwise they are liable to go rancid.

Freezer Storage: In freezer storage the temperature ranges from –20oC to 0oC.
For successful freezing it is necessary to blanch foods, cool quickly to freezing
temperature and pack in airtight containers or bags in quantities, which can be
utilized immediately on thawing. A food removed from the freezer storage must
never be partly or wholly kept back, or refrozen.

STORE LAYOUT
SANITATION, SAFETY, AND SECURITY OF STORES: Dry food stores should be fly
proofed and walls treated with suitable insecticides. All stores should be guarded
against rodents and pests, to safeguard both staff and consumers against infested
and contaminated food. To maintain satisfactory standard s of hygiene and
sanitation, it is necessary to keep stores neat and clean and to prevent attack of
food by bacteria and molds. It is good policy to formulate a schedule or chart for
regular cleaning and maintenance of stores.

Since stores stock items of daily use which are so vulnerable to pilferage and
theft, it is extremely important to provide proper safety and security measures at
the designing stage. The safety hazards to which stores can be exposed are:
 Infestation or contamination of food held in storage
 Theft or pilferage
 Microbial spoilage
 Fire
Store containers: Foods delivered in flimsy bags should be transferred to suitable
store containers. These should be easy to wash and have tight fitting lids.
Glass or plastic containers are suitable for many foods, such as spices and herbs,
being transparent. Bulk dry goods (pulses, sugar, salt etc.) should be stored in
suitable bins with tight fitting lids. All bins should be clearly labeled or numbered.
Sacks or cases of commodities should not be stored on the floor, they should be
raised on duck boards to permit a free circulation of air.
Some goods are delivered in containers suitable for storage and these need not
be transferred. Heavy jars and cases should be stored at a convenient height to
prevent any strain in lifting.

TYPES OF RECORDS USED IN STORES CONTROL

Bin Card: There should be an individual bin card for each item held in stock.
Stores Ledger: This is usually found in the form of a loose leaf file giving one
ledger sheet to each item held in stock.
Departmental Requisition Book: One of these books should be issued to each
department in the catering establishment, which needs to draw goods from the
store.
Order Book: This is in duplicate and has to be filled in by storekeeper every time
he or she wishes to have goods delivered.
Stocks Sheets: Stock should be taken at regular intervals of either one week or
one month.
 BIN CARD

HOTEL RITZ

Commodity: Max. Stock:

Unit: Min stock:

Date Ref: Receipt Issue Balance

 Maintained for each commodity stored.

 Attached to Bin/Crate
 Gives physical stock of an item
 Dual bin duplication of Bin card system for a commodity with high cost/usage.
(Also called 'stock record card')

CARDEX

 Same like bin card entries.

 Alphabetical rack.
 Replaces register.
 Additional information like past supplier and rates.
 Cardex used in Combo with bin card.
WASTATE/SPOOILAGE/ULLAGE/REGISTER

 Usage department and value entry

 Reasons: Improper rotation, accident, mechanical
 Certain % allotted in budget.

INVENTORY CONTROLS

STOCK TAKING

 Monthly (forotnightly/weekly)
 Done in presence of auditors by stores personnel.
 Inventory broken down to categories
eg: cans, cereals, pulses, beverage.

 Physical inventory cross-checked and tallied with book records or computers.

Physical inventory<.....>Kardex/Bin/Meat Tag

(Therefore cardex has to be accurately updated with help of ndents and bin card updated at
time of issue.)

 Stock taking has to be scheduled

(Avoid overtime payroll!) and commodities/stores need to be organized.

 Certain discrepancy (1% approx) is anticipated between books and actual stock.

Mandorin restaurant

Physical Inventory as on ..........................................................

Kitchen stores. Page

S.No Item U.O.M Stock in Stock Variance Unit value Variance %

record physical value

CC: GM Sd/- F&B Controller

Chef

F/B Manager

Stores Mgr.
Objectives:

 To compare usage with sales to assess F/cost%

 To determine money value of stock in hand.
 (P/L statement information)
 To compare book value and value
 To stop pilferage/wastage
 To categorise slow moving goods.