The Concepts of Selection and Procurement 1 The Concepts of Selection and Procurement

You Should Be Able To: Define the terms “purchasing,” “selection,” and “procurement.” Distinguish between commercial and noncommercial hospitality operations Differentiate purchasing functions in different types of hospitality operations.

Important Terms Purchasing – simply paying for an item or service; too restrictive Selection – choosing an item or service from a number of alternatives Procurement – obtaining goods and services Determining need Administering purchase contract Completing purchase Receiving and storing the shipment

The Buyer’s Job Determining how much to buy Determining the best price Determining the optimum time to make the purchase Determining which product or service meets the needs of the organization

Types of Hospitality Operations Commercial Profit-oriented Operations Non-Commercial Institutional Operations Military Operations

Major Purchasing Distinctions Independent Operation Small “Owner-op” Medium sized operation Large independent Multi-units and Franchises Central Commissaries