1. The Purchasing Function
Chapter 6

2. Not how much you make but rather how much you spend!!
The Purchase Function
The importance
Not how much you make but rather how much you spend!!
Training
Sources
Pricing
Seasonal quality
Possible subs
Controlling

3. The Purchase Function Controlling What do you need
Essential vs non-essential
Bulk vs splits
Quality
What is your level
How important is it
Color, shape, form, length, age, desired ripeness, size, brand, region

4. The Purchase Function Controlling Quantity Specs on time & price
Too much or too little
Space
Perishability
Specs on time & price
Ordering should be at your convenience, not the vendors
Vendors need to have the products to ship
Vendors need to able to deliver items

5. Purchasing Strategies
Strategies allow purchasers to level the playing field
Identify needs
Maximizing purchases
Co-op large volume vs small less trips for vendor
Comparing – purveyors, brands, & yields
Know them, do your homework
Its not always about the price
Sanitation
Backups

6. Purchasing Strategies
Strategies allow purchasers to level the playing field
Comparing – purveyors, brands, & yields
Brand loyal yes or no????
Yields – what are they, how do I get them
Different types of F&B operations need different items
Cost effective discounts
Use of coupons and promotions
Buy so many get rebate

7. Purchasing Strategies
Strategies allow purchasers to level the playing field
Unit pricing
Gallon vs qt items – ketchup, sugar
Safe amounts of inventory
Inventory is money
Pars – vary by type of op
Labor saving products
Labor skill level, equipment, storage

8. Purchasing Strategies
Strategies allow purchasers to level the playing field
Compare cash to credit
15 to 30 days
Avoid late charges
Cash flow
Compare interest rates
Credit from purveyor or bank??

9. Purchasing Strategies
Strategies allow purchasers to level the playing field
Contracts, understand them
Read them
Authorized to do it
Invoice signing
Be aware of “good deals”
Accurate invoices
Watch busy times
Reputable sources ethically

10. Purchasing Systems Ask these questions Can you make it or buy it
Do you need that brand
Can you delay purchase
Cash or not
Who is the best source

11. Purchasing Systems Purchasing directs Buying methods Used right away
Theft/waste issues
Corporate purchasing card
Buying methods
Cost plus -Co-op
Bid -One stop shopping
Stockless
Standing orders

12. Purchasing Furniture, Fixtures & Equipment
Larger cost – usually – pens
Watch for:
Ethical behavior
Replacing or discarding usable equipment
Discarding salvageable parts
Improper disposal of old stuff
Intentionally breaking or marring
Discard repairable items
Substandard equipment