PURCHASING AND RECEIVING

Purchasing may be defined as a procurement function concerned with search, selection,

purchase, receipt, storage and final use of commodity in accordance with the catering policy
of the establishment. According to John Stefanelli the food service purchasing involves:

• Developing purchase specifications.

• Preparing an approved suppliers list.
• Determining appropriate order size.
• Establishing appropriate receiving and storage procedures

Duties and responsibilities of Purchase manager

• The Purchase Manager is responsible to the administration of the purchase department.

• Responsible to maintain and upkeep of all purchase documents.
• For all purchases obtain proper requisition from with specification for item and Budget
Code duly authorized and inky then place written purchase orders.
• Locate surveyors/vendors, find out there they are situated and extend of their resources.
• Maintain a choice of vendor and suppliers.
• Establish ‘Lead Time’ of delivery of various vendors.
• Be familiar with Governmental procedures of import.
• Maintain cordial relation with food production, control, accounts Government agencies and
vendors and marketing.

Qualities to be adhered by a Purchase Manager

(a) Have knowledge of commodities.

(b) Know the basis cuts of meats and the differences between various goods.

(c) Be familiar with method of processing, grading, packing of the fresh / canned .frozen and
dehydrated fruits, vegetables groceries and staple.

(d) Have a general knowledge of crop condition in market.

(e) Carry outlines to establish quality of Purchase.

(f) Advise and guide the Food and Beverages Manager/Chief in planning their menus,

(g) Visit the local fruits and vegetables markets to find out prices and seasonal items and
advise Management accordingly.

Methods of Purchasing

An 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 Purchasing

 Periodic Purchasing

 Purchasing by Daily Quotation Sheet

 Purchasing by Cash and Carrying

Contract Purchasing

In 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. A short term 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

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.

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.

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.
Periodic Purchasing

 This 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.

Purchasing by Daily Quotation Sheet

 Orders are placed as required on a day to day basis. This method is suitable for
perishable goods to ensure freshness.

Purchasing by Cash and Carrying

Within 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

For effective purchasing the following factors must be considered.

 The Price

The 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.

The Purchasing Procedure

There 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.

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.

The Selection of a Supplier

On 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.

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.

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

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.

b) 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:

 The total value of goods delivered by each supplier

 The number of items rejected and with their values.

Standard Purchase Specification

Standard purchase specification are concise description of quality, size, weight, or count
factor desired for a particular item, Specification buying will give uniformity and consistency
to purchasing and receiving, that will aid to maintain a desire food cost and create a standard
product.

Objective:

· To establish a suitable buying standard for particular commodity for the hotel.

· To furnish the supplier in writing in specific term the requirement of the hotel.

· To help in setting the price of a commodity.

· To obtain a standard product material for f & b dept.

· To obtain a standard product so that measurement of performance of departments can

be accurate.

For proper and effective control, purchase specification should be used in all purchasing. It
help in bringing uniformity and consistency in buying, which maintains required cost of
product. Each specification is determined by purchase manger, Executive chef, and F & B
manager as per the catering policies, menu requirement and price range. The specification
format is maintained with F & B service and production, receiving, stores department.

The purchase specifications contain:

a) Definition of each items. b) Grade or brand name of each item

c) Weight, size, or count. d) Unit against which price should be coated.

e) Special note for commodity.

Copies of the purchase specification need to be sent to the following:

· The purchase department

· The supplier

· The executive chef

· The receiving department.

 HOTEL XYZ
STANDARD PURCHASE SPECIFICATION

PRODUCT:_________________
USE:_______________________
GRADE /
QUALITY:___________
UNIT:______________________
PRICE
/ UNIT:_______________
AVAILABILITY: SEASONAL / ALL YEAR ROUND
APPEARANCE: ______________
TEXTURE:___________________
COLOUR:___________________
FLAVOUR:__________________
PACKING:__________________
SIZE AND SHAPE:___________
NO. PER
KG:________________
MISCELLANEOUS:___________