QUALITY PURCHASING - Ensures delivery of the needed amount of

Purchasing food and supplies

- the process of securing and acquiring the
necessary ingredients, supplies, and Negotiation
equipment needed to operate a food service - communication skill used by individuals to
establishment. confer with others to reach an agreement or
Basic Flow of Purchasing compromise
1. Identify needs by planning new or reviewing - May be informal or contract-based
existing menus
2. Determine standards of quality for each Ethics in Purchasing
food item and write specifications - AVOIDANCE OF KICKBACKS : Refrain
3. Estimate quantities needed from accepting any form of incentive
4. Calculate desired inventory or stock levels - REJECTION of GIFTS and FAVORS:
5. Identify amounts to purchase by subtracting Decline any gifts, favors, or other incentives
stock levels from desired quantities - INTEGRITY in VENDOR RELATIONSHIPS:
6. Develop purchase orders Maintain integrity in relationships with
7. Conduct market research on potential vendors by avoiding preferential treatment
vendors' product availability
8. Select and negotiate with vendors COMMON TYPES OF PURCHASING
1. Centralized Purchasing
THE MARKET - purchasing department is
- the term is used about commodities or the responsible for obtaining needed
raw agricultural products used to produce supplies and equipment for all units
foods in the organization rather than a
department manager
Market Distribution 2. Group Purchasing
- Refers to the distribution of food from - members of the group are
sources to consumers through a series of independent organizations and are
market channels not under the same management or
Market Channels within one organization.
- A segment of the distribution process where 3. Cooperative Purchasing
an exchange of ownership occurs - the members are usually units of a
- Agricultural production - processing - larger system, such as schools in a
Manufacturing - distribution - foodservice citywide or countywide school
Intermediaries system
- Act as conduits between the manufacturers, CATEGORIES OF VENDORS AND FOOD
distributors, and consumers. DISTRIBUTORS
Broker 1. Broadline or Full live vendors
- Serves as a sales representative for a - food distributor carries large
manufacturer or group of manufacturers inventories of food and supplies,
Manufacturer’s Representative representing numerous specialty
- Serves as a sales representative for a vendors
single manufacturer 2. Specialty Vendor
- Typically carries a limited product
THE BUYER line, limits its line to only groceries or
- can be assigned to an individual or can be a carry a single commodity
team, depending on the size and ownership
of the organization
Vendor Resources: 2. Frozen food
1. The Internet - Foods that have been subjected to
2. Other foodservice freezing to preserve them for longer
3. Operators periods.
4. Trade journals and 3. Canned foods
5. publications - Foods that have been processed,
6. Trade show sealed in airtight containers, and
then heat-treated to kill bacteria and
METHODS OF PURCHASING extend shelf life.
1. Informal Purchasing 4. Ready to eat foods
- A commonly used method of buying, - Foods that are fully cooked and can
especially in smaller foodservice be consumed without further
operations preparation
2. Formal competitive bid buying
- A contract-based type of purchasing QUALITY STANDARDS
involving bids and price quotations - may refer to wholesomeness, cleanliness,
from suppliers before awarding the or free from undesirable substances
contract - may denote a degree of perfection in shape,
- Written specifications and estimated uniformity of size, or freedom from
quantities needed are submitted to blemishes
vendors with an invitation for them to Desirable Characteristics:
quote prices, within a stated time, for 1. Color
the items listed 2. Flavor
3. Prime Vending 3. Aroma
- method involves a formal agreement 4. Texture
(secured through a bid or informally) 5. Tenderness
with a single vendor to supply the
majority of product needs Grade
4. Blanket Purchase Agreement (BPA) - Are market classifications of quality
- purchased from local suppliers, but - a systematic way to communicate the
the exact items, quantities, and quality of products in the market
delivery requirements are not known
in advance and may vary Brands
5. Just-in-Time Purchasing or JIT - Are assigned by private organizations
- The product is purchased in the - Brand names may represent products that
exact quantities required and are higher or lower in quality than the
delivered “just in time” to meet the corresponding government grade
production demand.

PRODUCT SELECTION
- Refers to the process of choosing which
food and beverage items to offer on a menu
or within a food establishment.

MARKET FORMS OF FOOD

1. Fresh food
- Foods that are harvested and sold in
their natural state without processing
PURCHASING PROCESS 2. Mini-max system
- Stock is allowed to deplete to the
safety level before new order to
reach the maximum stock level.

WRITE SPECIFICATIONS
- A brief but concise description of a product
stated in terms understood by both buyer
and seller
- May include the shape, size, degree of
maturity, pack, nutrient content, freshness,
etc.

DEVELOP PURCHASE ORDER

- It begins with a request with quality
specifications as the basis for the purchase
order authorized by the purchasing agent.
- Specifies quantity, quality specifications,
required date of delivery, name of the
organization, address, and signature of the
IDENTIFY NEEDS
authorized person.
- Food quantities are identified from the
menus and from recipes used to prepare
Purchase Order
them
- Are written request to a vendor to sell goods
- It takes into account the inventory stock
or services to a facility
levels which would be used for appropriate
purchasing of ingredients.
FORMAL PURCHASING METHOD
Requisition
- Collected requests of ingredients from each
ISSUING BID REQUESTS
of the production services and area
- An invitation to bid provides vendors an
Inventory
opportunity to submit bids for specific items
- A detailed and complete list of goods in
needed by a buyer
stock
- A bid request includes quantities required
Two Types of Inventory Stock Level
and specifications for each item.
1. Minimum Stock Level
- The point established for each item,
TABULATING AND EVALUATING BIDS
which the inventory should not fall.
- Collecting all of the bids from the suppliers
- The minimum amount of stock the
and evaluating, which among the bidders
inventory should have
gets rewarded with the contract
2. Maximum Stock
- Test samples may be done to assess the
- The highest amount of stock set in
quality and validity of the specifications
the inventory
written by the bidder or supplier.
- It is equal to the safety stock plus
the estimated usage
AWARDING CONTRACTS
Two types of System
- The contract should be awarded to the most
1. Par stock system
responsive and responsible bidder with the
- Stock is brought up to this level each
price most advantageous to the purchaser
time an order is placed regardless of
- Purchasing should be based on price,
the amount on hand
quality, and service.
RA 9184
- Government Procurement Reform Act

INFORMAL PURCHASING METHOD

PRICE QUOTATIONS AND SELECTION OF

VENDOR
- Prices are based on a set of specifications
furnished to interested vendors
- The buyer and vendor must agree on
quantities and prices before delivery

RECEIVING AND INSPECTING GOODS

- It includes inspecting the quality, condition,
and quantity of the purchased goods and
allocating them to a space in the warehouse

STORAGE AND EVALUATION

- Store food properly. Food should be kept at
safe and appropriate temperatures and
used in a first-in-first-out (FIFO) manner
- Kabaw namos proper storage conditions
- Evaluate and record new information on the
needed ingredients for the next purchasing
process.