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 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

5. 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

6. 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

7. 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

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

9. 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

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