© 2011 John Wiley and Sons, Inc. All Rights Reserved Selection and Procurement for the Hospitality Industry Purchasing ANDREW HALE FEINSTEIN AND JOHN M. STEFANELLI E i g h t h E d i t i o n

© 2011 John Wiley and Sons, Inc. All Rights Reserved CHAPTER The Buyer’s Relations With Other Company Personnel 7

© 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO: Distinguish between a job description and job specification. Describe the buyer’s relationship with others in the hospitality organization. Summarize the skills and qualities typically sought after in a hospitality buyer. Explain various methods used to evaluate a buyer’s performance.

© 2011 John Wiley and Sons, Inc. All Rights Reserved THE JOB SPECIFICATION Lists qualities or skills sought in a candidate Skills Technical Interpersonal Conceptual Other Experience Integrity Work effort

© 2011 John Wiley and Sons, Inc. All Rights Reserved OTHER HIRING FACTORS Labor pool Budgeting Job description List of duties an employee must perform Follow the objectives of the Purchasing Function

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION List of duties Objectives of the company’s purchasing function Purchasing appropriate quality Purchasing at right price Purchasing in the right amount Purchasing at the right time Purchasing from the right supplier

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Selection and Procurement Policies Supplier gifts Favoring suppliers Limiting quantity Limiting prices Making personal purchases

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Selection and Procurement Policies (cont.) –Establishing reciprocity –Free samples –Accepting discounts Quantity Volume Cash Promotional

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Selection and Procurement Policies (cont.) Written ethics code Controlling products Supporting local suppliers Quality standards Shopping procedures

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Compensation Training

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Performance Evaluation for Buyers How well they operate the purchasing department – operational performance How well they have carried out the procurement function – procurement performance Materials budget Inventory turnover Percentage of sales volume

© 2011 John Wiley and Sons, Inc. All Rights Reserved JOB DESCRIPTION (CONT.) Performance Evaluation for Buyers (cont.) Stockouts Number of late deliveries Number of items that must be returned Number of back orders Checking AP prices

© 2011 John Wiley and Sons, Inc. All Rights Reserved POTENTIAL CONFLICTS Colleagues Hourly Employees