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PURCHASING

SELECTION & PROCUREMENT


FOR FOOD SUPPLY CHAIN

WHAT IS PROCUREMENT ?
An orderly, systematic exchange between
a seller and a buyer
Including .
Determining a need to be filled from outside
sources.

CONTINUE
Searching the market
Negotiating with sellers and ordering
Receiving items
Storing
Issuing
Evaluating how well the procurement function
was performed

Procurement also one of the process in


obtaining goods/raw materials/supplies up
to issuing the items
It is an necessary (fundamental) function
or activity in foodservice system

BUYING DECISION BEEN MADE


BY.
Owner
Manager
Chef
Purchasing manager
Head of department
Purchasing committee
Board of directors
. Involved the top management
..management responsibility

WHO IS RESPONSIBLE FOR


PROCUREMENT?

Is the responsibility of Purchasing


Manager.
Skills to look for in choosing a
purchasing manager.

Functional skills:

Technical skill
Specialized knowledge

Managerial skills

Communication skills
Leadership skills
Human relations skills
Administrative, planning and organizing skills
Others.??

Objective of Procurement
A sequence of repeated activity or process
with the target of securing food, supplies,
and equipment to meet the foodservice
operation & organization objective.

Other Objectives
Objective 1: Support Operational
Requirements
Understand business requirements
Buy products and services

At the right price


From the right source
At the right specification that meets users needs
In the right quantity
For delivery at the right time
To the right internal customer

Objective 2: Manage the Procurement


Process and the Supply Base Efficiently and
Effectively
To manage the procurement process and
supply base efficiently and effectively
procurement must follow the following key
steps:
Identify opportunities where the procurement team
adds true value:
Evaluation and selection of suppliers
Review of specifications or statement of work
Acting as the primary contact with supplier

Manage internal operations efficiently and


effectively, including:

Management of procurement staff


Developing and maintenance of policies and processes
Introducing and leveraging appropriate technology and systems
Defining procurement strategy and structure
Developing plans and measures
Providing procurement leadership to the organization
Providing professional training and growth opportunities for
employees

Achieve this objectives through:

Leadership of procurement for the organization


Sourcing management
Ownership and accountability for sourcing processes
Communication of purpose, process and pay off
Collaboration and partnering
Teamwork

Objective 3: Develop Strong Relationships


with Other Functional Groups.

Objective 4: Support Organizational Goals


and Objectives.
Develop integrated purchasing strategies that
support organizational strategies.

Effective purchasing / procurement strategies involve:


Monitoring supply markets and trends (e.g., material price
increases, shortages, changes in suppliers) and interpreting the
impact of these trends on company strategies
Identifying the critical materials and services required to support
company strategies in key performance areas, particularly during
new product development
Developing supply options and contingency plans that support
company plans
Supporting the organizations need for a diverse and globally
competitive supply base

Hospitality Operation
TYPES OF
HOSPITALITY
OPERATIONS

COMMERCIAL

PROFIT ORIENTED
OPERATIONS

NON
COMMERCIAL

INSTITUTIONAL
OPERATIONS

MILITARY
OPERATIONS

MAJOR PURCHASING
DIFFERENCES IN HOSPITALITYOPERATION TYPES
Independent operation
.own buying .co-operative buying
Multiunit (HQ being manager over
managers)
Franchises

STRUCTURE OF A LARGE HOTELS


BUYING ORGANIZATION
Owner , manager , general manager

Purchasing department of food and beverage control


Storekeeper (s)

Chef

Matre
dhotel

Housekeeping

Bars

Maintenance

Others

Structure of cooperative buying


Central unit or warehouse

Co-ordinator or manager

Co-op members

Structure of chain operations


Corporate purchasing manager

Commissary or central distribution

Unit managers

User buyer

CORPORATE PURCHASING
DIRECTOR
CORPORATE
PURCHASING
DIRECTOR

FOOD
BUYER

BEVERAGE
BUYER

COMMISSARY

EQUIPMENT &
SERVICES
BUYER

UNIT MANAGERS

STORES
MANAGER

USER BUYER

Directs and oversees an organization's purchasing


function. Develops policies and procedures related to the
procurement of goods and services. Requires a bachelor's
degree with at least 10 years of experience in the field.
Familiar with a variety of the field's concepts, practices, and
procedures. Relies on extensive experience and judgment
to plan and accomplish goals. Performs a variety of tasks.
Leads and directs the work of others. A wide degree of
creativity and latitude is expected. Typically reports to top
management.