2. The Concepts of Selection and Procurement1
The Concepts of Selection and Procurement

3. 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.

4. 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

5. 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

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

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