HBM 131 1st Edition Lecture 26 Outline of Last Lecture I Group Presentations A Proprietorships B Ownerships Outline of Current Lecture I Affiliates Current Lecture I Affiliates A Vendor Relations 1 Price 2 Quality 3 Consistency of product delivery 4 Delivery Dates and times B The objectives of purchasing 1 Maintain adequate supply 2 Maintain quality standards 3 Minimize investment 4 Maintain an operations competitive position 5 Obtain the lowest possible EP or AS price edible portion or as serviced price C Purchasing has a direct impact on the following 1 Availability of items for sale 2 Type and quality of the operations products 3 Available funds an operation has on hand 4 Profitability and competitive position of an operation D Inventory and Purchasing 1 Allows control of products so you can measure your operation against standards and goals 2 When variances are discovered action can be taken to eliminate or exploit those variances E Purchasing Objective 1 Maintain Adequate supply 1 Customer count history covers 2 Popularity index of items sold PMIX 3 Vendor delivery schedules 4 Availability of items from vendors 5 Analysis of outside influences that might affect an operation such as conventions festivals and weather forecast F Purchasing Objective 2 Maintain Quality Standards 1 Following the operation s established quality standards for each item or service when purchasing Specification sheets 2 Clearly communicating these standards to potential vendors G Purchasing Objective 3 Minimize Investment 1 Customer count forecast 2 Anticipated cash needs for a given period 3 Availability of storage for products 4 The forecasted future costs of items purchased H Purchasing Objective 4 Maintain an Operation s Competitive Position 1 Choose vendors who will provide the combination of price and service for the operations needs 2 Concentrate on obtaining the lowest possible edible portion price the cost of an item after all trimming and fabrication but before cooking 3 Or AS as served price the cost of an item as it is served to the customer I Purchasing Objective 5 Obtain Lowest EP or AS Price 1 Operations must focus on the true cost of each item as it is served not the as purchased AP price which is the price of an item before all trimming and fabrication and cooking 2 What is the difference If you buy it cheaper shouldn t it be cheaper when it hits the plate Think of Yields quality waste etc J The Make or Buy Decision 1 Make or buy analysis is done to discover the proper balance in food production yielding the best possible outcome to satisfy the quality standards set for the operation 2 Value added products proportioned and processed food items In many cases the cost incurred for paying a premium price attached to a value added products is offset by other overhead involved in running the operation K The Make or Buy Decision 1 To Buy consistency cost effectiveness time effectiveness space saving 2 Or not to Buy Value added must grader than cost added signature sauces and styles generally the food s cost will be lower the nutritional value higher fewer additives L Associations and Organizations 1 WSRA 2 NRA 3 ACF 4 Lodging associations 5 NRA Oct Report M Certification and Educational Programs that educate and prepare people for the hospitality Industry and the trade journals that keep us abreast of the industry 1 Serv Safe 2 Spot Check 3 Nations Restaurant News
View Full Document
Unlocking...