By: Murage Macharia

PURCHASINGThis may be defined as a function concerned with the search, selection then purchase, receive storing and final use of a commodity in accordance with the catering policy of the establishment.

SearchingThe purchasing officer is responsible for looking for the items which are most suitable for the business.SelectionHe is responsible for selecting the most suitable items.

Murage Macharia

Cont….

BuyingThe purchasing officer enters into the contract with the selected supplies of food commodities.ReceivingThe purchasing officer receives the goods ensuring that quality and the quantity and the price is as agreed.

Murage Macharia

Cont….RecordingHe ensures that items received are recorded and stored properly.IssuingHe ensures that items are issued to the user units as required.FeedbackHe receives a feedback confirming the suitability of items purchased.

Murage Macharia

Purchasing in Food and Beverage Control Cycle

POLICY

→ shows what the market is aimed at.

↓

MENU → determine the choice available for customers and food and beverage quality standard.

↓

VOLUME FORECAS

T

→ determine what food and beverage are required. ↓

Murage Macharia

Cont…

PURCHASING

→ Here the selection of the supplies and the methods of purchasing are determined.

↓

RECEIVING

→ Quantity and quality inspection.

↓

STORING & ISSUING

→ Storage requirement, stock records and pricing of issues ↓

Murage Macharia

Cont….

PRODUCTION

→ Preparation and processing.

↓

SELLING → Provision of acceptable meals and drinks at correct selling prices. ↓

CONTROL → Involves the provision of report assessing the final result and corrective actions if there are any.Murage Macharia

Cont….NB// in large establishment the purchasing officer is involved with large purchase and therefore it is important that the right staff is employed to run the department. In school or college all the purchasing may be carried out by the bursar who buys all the items for the institute, in a hospital the purchasing may be the responsibility of a senior purchasing officer or senior supplier’s officer. In small restaurant and canteens the chef may do all the buying whereas in large hotel all the buying is done by the purchasing officer.

Murage Macharia

Duties of the Purchasing OfficerThe duties may be inevitable varying from one establishment to another and will usually include the following.The purchasing of all food and beverage and ensuring of continuity of supplies.Efficient operation and control of the purchasing officer, the goods received dept the stores and the cellar.Responsible for finding cheaper and better sources of supplies and as well as new substitute materials.

Murage Macharia

Cont….Maintaining good liasone with the user

unit e.g. catering unit, restaurant unit, control unit, bar unit, housekeeping unit, accounts office to ensure prompt payment for goods received.

Responsible for reporting to the management on the activities of the department.

Responsible for searching in relation of the requirement of the establishment.

Murage Macharia

Methods of PurchasingAn establishment should select the methods of purchasing which is both economical and efficient an establishment may use any of the following methods or a combination of both.Contract PurchasingPeriodic PurchasingPurchasing by Daily Quotation SheetPurchasing by Cash and Carrying

Murage Macharia

Contract PurchasingIn contract purchasing the establishment enters into a contract with a supplier for the items to be supplied. This method is suitable for items with stable prices e.g. meat, sugar, flour bread, salt normally a short term contract is usually for six months. A contract will be for three months and long term contract and usually for six months. A contract is a legal document and which must have all the relevant clauses as follows.i)The period of contract.ii)The estimate quantities as accurately as possible.

Murage Macharia

Cont….iii) The reservation of the establishment to divide

a contract if necessary between suppliers.iv) The purchase specification for the item

concerned.v) The removal of any rejected food to be

undertaken by the suppliers.vi) Power to purchase in default – should a

supplier not be able to supply a commodity the establishment reserves the right to purchase the commodity from another source and any expense incurred or difference is normally changed by a supplier under a contract.

Murage Macharia

Cont….vii)Indemnity against damage – The supplier

should be responsible for the damage property.

viii)Prevention against corruption – The establishment reserves the right to cancel the contract should there be any unethical practices e.g. bribery of any member of the staff.

ix) The place of delivery must be considered so that the products or goods are delivered at the correct place and the right time.

Murage Macharia

Cont….x) Invoices to be supplied within a specific

time after delivery has taken place.

xi) Payment of invoices information to be given to the supplier as to when the payment will be made.

xii)Service of notice to break the contract – here the period of time to be given by either party to be specified and to who notice is to be served.

Murage Macharia

Periodic PurchasingThis is purchasing by weekly or fortnight,

quotation sheets requirement for a given period are estimated and ordered. It is suitable for non-perishable goods e.g. sugar, flour, salt, cereals soaps etc. The quantity ordered will be determined by among other considerations storage space available.

Murage Macharia

Purchasing by Daily Quotation SheetOrders are placed as required on a day to day

basis. This method is suitable for perishable goods to ensure freshness.

Murage Macharia

Purchasing by Cash and CarryingWithin the opening of many supermarkets and uchumi offering goods at very reasonable prices some establishment opt to pay by cash for most of their goods from the supermarket most wholesalers also sale directly to the establishment at the wholesale price. This way the establishment takes the advantage of:Competitive prices being offered.Free to select the best products.

Murage Macharia

Cont….For effective purchasing the following factors must be considered.The PriceThe buyer must explore all possible suppliers offering the most economical prices, trade discounts and terms of payment must be negotiated.It allows the opportunity to purchase small quantities of an item so that a new product or a new brand may be sampled with minimum of cost.In cash and carry we can also buy from the warehouses at reduced prices.

Murage Macharia

The Purchasing ProcedureThere are various stages in the purchasing procedure.i)The initiation of a request to purchase goods by an authorized member of staff such as the head chefs, head barman or restaurant manager.ii)The determination of the source of supply from which the goods are to be purchased and the price to be paid. iii)Entering into a contract with the firm selected this may be by telephone for perishable items or writing on a detailed contract form.

Murage Macharia

Cont….iv) Obtaining a satisfactory delivery

performance from the supplier with regard to time, date and place of delivery.

v) The acceptance of goods ordered and the transfer to the ordering department or to the store or cellar.

Murage Macharia

The Selection of a SupplierOn receipt of an authorized requisition form. It is necessary to check the economic quantity to be purchased by reference to the existing shock of the volume focused.1.The first stage of that of entering into a form of a contract with a supplier, the supplier should be selected from these with whom business has been done before as standards of goods obtained and service ordered will be known.

Murage Macharia

Cont….2. Supplier is selected from (i) or (ii)

recommended to the purchasing officer by a fellow purchasing officer himself or a good standard. The new supplier may become available as a result of an approach by the purchasing officer himself or a supplier representative. The basic information required by a new supplier would include.

Murage Macharia

Cont….The basic information required by a new supplier would include.a)Full details of the firm.

Range of products that can supply.The address of the head office.Name of their bank.Referees

Murage Macharia

Cont….b) Printed copies of recent price list.c) Must have samples of products for tasting and

the sample should be free d) To visit to a new firm is necessary because here

the supplier must know the size of the company its storage facilities and transport and also attitude of firm to a new customer.

e) Supplier rating – The third method of selection is based on the suppliers Information of the other customers of their products, this means that the supplier offers the supplies to other people.

Murage Macharia

Cont….3. performance if possible compare suppliers of

the same group commodities as they have similar problems as regards the market conditions, the best suppliers is the one who provides the firm with the most efficient service with rearguard to quantity, quality, price and delivery of performance. What often is not ready available but is necessary to further evaluate the supplier and record on:

i. The total value of goods delivered by each supplierii. The number of items rejected and with their values.

Murage Macharia

Cont….iii. The percentage value of goods rejected.iv. Any late delivery of goods.

This information can be used to make supplier aware of this poor performance and also can be used by the receiving department in that they will be aware of the supplier whose goods will need a closer inspection.

Murage Macharia

The Purchasing of beveragesIt is similar in many ways to the purchasing of food that is buying the best possible product of the establishment.

Standards and selling money by buying the less expensive brands for ingredients whenever possible.

The main sources of supply of beverages are:

Murage Macharia

Cont….Wine ShippersThese are firms that buy wine in the country of

origin and supervise the shipment of it the country in which it will be sold.

WholesalersThey are either independent companies or

subsidiary companies of a large breweries..Cash and CarryYou can also buy wines from the supermarket. It

offers a limited range of wines, spirits beers at reasonable prices.

Murage Macharia