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 Selection Simply paying for an item or service Too restrictive of a term Selection Choosing from among various alternatives Can choose from different suppliers Can choose from different products

Important Terms Procurement An orderly, systematic exchange between a seller and a buyer Process of 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

e-commerce E-commerce E-procurement Transactions that are done electronically B2B – business to business B2C – business to consumer E-procurement Ordering products and services online

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

Types of Hospitality Operations Commercial Operations Hotels, Motels, Resorts, Casinos Restaurants, Caterers, Snack Bars Spas Noncommercial Operations Schools, Senior Living, Hospitals Non-Profit Programs, Shelters, Churches Military installations

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