Food

Procurement
Strategies

Prepared by Alayne W. Ang, RND

Outline

– Operation process
– Characteristics of perishable and nonperishable foods
– Importance of standard purchase specifications
– Quality standards
– Quantity standards
– Determining the quantity of perishable food
– Inventory
– Purchasing
– Receiving
All foodservice establishments have
the following sequence of operation:

1. Purchasing
2. Receiving
3. Issuing
4. Producing
5. Selling and serving
Purchasing &
Receiving
Perishables &
Nonperishables

Perishables Nonperishables
– Fresh – Longer shelf lives
– Comparatively short useful life – Grocery or staples
– Should be purchased for – May be stored in the packages or
immediate use containers when
– Par stock purchased/received
Standard Procedure for
Purchasing
– Developed for the following:
– Quality
– Quantity
– Price purchased
Importance of Standard
Purchase Specifications
1. Force to determine exact requirements in advance
2. Useful in menu preparations
3. Eliminate misunderstandings
4. Make true competitive bidding possible
5. Eliminate the need for detailed verbal description
6. Facilitate checking of food
Quantity Standards

– Subject to continual review and revision on a daily basis

– Perishables:
– It is important to use up those already on hand before purchasing additional
quantities
– Total quantities needed – Quantities at hand = Quantity to purchase
– Nonperishables:
– Contributes to considerable amounts of money invested in material storage
– Avoid having excess quantities on hand = reduction on storage space and personnel
– Eliminate possibilities for theft
Inventory for
Nonperishables
– Periodic Order Method
– Most common method for maintaining
inventories of stores
– Permits comparatively infrequent ordering
– Allows the steward to have more time available
for ordering perishables
– Bin cards
– Record quantities added to and taken from
shelves right on the label
Inventory for
Nonperishables
cont’d

– Perpetual Inventory Method

– Ensure quantities purchased are sufficient to
meet anticipated needs
– Provide effective control over items stored for
future use
– Requires maintenance of perpetual inventory
record
– Perpetual Inventory Card
– Similar to Bin Cards but not affixed to the shelves
– Kept in another location and maintained by
someone who does not work in the storeroom
Establishing Price Standards

– Supplier categories:
– Wholesalers
– Local producers
– Manufacturers
– Packers
– Local farmers
– Retailers
– Cooperative associations
Means of obtaining
price quotations
– To ensure that purchases are made at the most favorable prices, the steward
must obtain prices from several competing suppliers for each product that he or
she intends to buy
– Telephone
– Fax
– Quotation sheets by mail
– Fax modem
– Information from salespersons
– Internet
Means of obtaining price
quotations cont’d
– Perishables:
– Prices change daily
– Necessary to contact several different suppliers to determine current prices each
time an order is to be placed
– Copies of specifications have previously been sent to suppliers
– Nonperishables:
– Sometimes obtained from same suppliers of perishables
– Stewards generally prefers less suppliers to deal with and simpler process
Centralized
Purchasing
– Widely used by chain operations
– Requirements of individual units are relayed to a
central office
Centralized Purchasing
cont’d

Advantages Disadvantages
– Purchased at lower price – Little freedom to purchase peculiar
needs of one unit
– Greater choice of markets
– Unable to take advantage of local
– Can obtain foods that meet exact
“specials” at reduced prices
specifications
– Limited freedom to change a menu
– Larger inventories
– Reduced dishonest purchasing
Standing Orders

– Stewards commonly make arrangements with certain purveyors for the delivery
of goods without specific orders
– Typically take one of two forms:
– One arrangement calls for delivery of a specific quantity, number remains constant
unless changed by the steward
– Second arrangement calls for replenishing of stock each day up to a certain
predetermined number
Receiving
Controls
– Primary objective is to verify that quantities,
qualities and prices of food delivered conform
to orders placed
 Reference

Dittmer, P. R., & Keefe, D. J. (2006). Principles of Food, Beverage, and Labor
Cost Controls (Eighth ed.). Hoboken, New Jersey: John Wiley & Sons.