1. A Brief Overview of the Purchasing Process…

2. Three Requirements to Efficient Purchasing
Effective buying methods
Qualified and honest purveyor
Sound set of Specifications

3. Specifications (Product Spec, Purchase Spec)
The exact description
Size, quality, weight, count and any desired supplier service
Ie – Chicken Breast, Grade A, boneless 6oz. single lobe, no rib meat, 5# bulk bag, ice pack
These should be made clear to the purveyor

4. Build a Solid Business Relationship with your Vendors
Be firm on your specs and standard of communication
Proper checking, counting, and weighing of products will let the company know you are serious about the quality
Long term relationships and maintaining open communication is key!

5. Some Tips…
Product allegiance- when you agree to buy a certain amount, buy it
Timely ordering- depends on each company
Efficient receiving- do not hold them up for unreasonable amounts of time
Proper handling of invoices

6. It Starts with a Requisition…
Purchasing Process
It Starts with a Requisition…
This is an order put in to the purchaser by the chef or sous chef for items that will be needed for a future event or events.
Must be accurate and specific.
“Specs”
Pars are also taken into account when making a requisition

7. Pars
Predetermined levels needed to meet demands for a particular period of time
Should be updated frequently
Par levels are set on previous usage, sales forecasting, product shelf life, and common sense

8. Pars Prevent: Panic purchasing- which is usually at a higher price
Selling out of an item
Product spoilage

9. Invoice
- a list of goods sent or services provided, with a statement of the sum due for these; a bill.
What will be included:
1) Item Description
2) Item Number
3) Unit Size
4) Quantity of Unit Shipped
5) Unit Price
6) Extended Price
It is IMPERATIVE that you compare ordered product vs. shipped product!
WHY??

10. Invoice

11. Receiving Purveyors will only respect what YOU inspect!
You will gain a reputation if you can be beaten at the loading dock…

12. Types of receiving Simple- verify # and type of goods
Complex- verify #, weight, specs, what was ordered
Blind- verify after recording what was received
(don’t look at invoice while checking)

13. Tools and Techniques Regular receiving hours Trained employees
Spec file
Purveyor bid sheet
Invoice stamp

14. Price Sheet Usually good for one week What’s Included? - Item #
- Item Description
By Main Item, then Specs
- Unit
Price Per Unit
PRICE SHEETS ARE USED TO CREATE BID SHEETS

15. Bid sheet
Daily, weekly, monthly price comparison chart used to determine the least expensive prices between available Purveyors

16. Set Standards Make your job easier!
Have purveyors fax/ price sheets same time every week
Have purveyors fill out YOUR bid sheets

17. Purchase History

18. Knowing YIELD is very important to the purchasing process…
Yield = EP/AP
EP- Edible Portion
AP- As Purchased

19. Yield Example
You purchase a 50# bag of onions. After it is peeled you weight it and you are left with 45lbs of onions. What is the yield?
Yield = EP/ AP
Yield = 45/50
Yield = 90%

20. One more example
You buy a filet of salmon that weighs 3 lbs. After trimming and skinning you are left with 2 ½ lbs of usable product.
What is the yield?
Yield = 2.5/3
Yield = 83%

21. Why is Yield So Important?

22. Why yield is important…
It is used to determine how much to purchase.
It is used to determine the true cost of products.
It is used to decide how to purchase and what the best deal is.

23. How much to purchase? Yield = EP/AP AP = EP / Yield
EXAMPLE:
When cooking prime rib, one can expect a yield of 80%.
There is a party for 100 people who will all be served a 16 oz slice. How much should I buy?

24. Purchasing Prime Rib: AP= EP / Yield AP=100lbs / 80% AP = 125
You need to purchase 125# of Beef Ribeye

25. Determining True Cost of Product
Yield = EP / AP
Cost / Yield = True Cost
EXAMPLE:
You are pricing your stock and it calls for 2 lbs of onions. Onions cost .93 per lb and they have a 90% yield once peeled.
How much do diced onions cost you?

26. True Cost of Onion:
Cost / Yield = True Cost .93 / .9 = True Cost $1.03 = True Cost

27. Determining the Best Deal:
Whole Snapper cost $3.25/lb
Snapper filets are on sale for $9.99/lb
Whole Snapper has a yield of 30%
Which is the cheapest way to purchase?
Cost / Yield = True Cost
$3.25/.30 = $10.83/lb for Fillets from Whole Snapper