Food Purchasing Control

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved

Food Purchasing Control


Responsibility for Purchasing

Who does the purchasing?– Owners– Managers– Chef– Steward

One person responsible so they can be held accountable


Perishables & Non-perishables

Perishables; those items that are typically fresh foods, and have a relatively short shelf life

Non-perishables; those food items that have a relatively longer shelf life– Groceries– Staples– Storeroom items


Developing Standards and Standard Procedures for Purchasing

1. Quality of food purchased

2. Quantity of food purchased

3. Prices at which food is purchased


Uses for Standard Purchase Specifications

1. They force owners or managers to determine exact requirements in advance

2. They are often useful in menu preparation

3. They eliminate misunderstandings between stewards and purveyors

4. Allows for true competitive bidding

5. Eliminates need for detailed verbal descriptions

6. They facilitate checking food as it is received


Steward’s Market Quotation List

Steward’s market quotation list - a form often used as a tool by food purchasers for;– Taking daily inventory of perishables– Determining suitable order quantities– Recording market quotations– Selecting vendors

Par stock – maximum quantity that should be on hand at any given time


Periodic Order Method

Periodic order method: Amount required for the upcoming period

- Amount presently on hand

+ Amount wanted on hand at the end of the period to last until the next delivery

= Amount to order


Perpetual Inventory Method

Perpetual inventory method: Par stock- Reorder point

= Subtotal

+ Normal usage until delivery

= Reorder quantity


Determinants for Maximum Quantity of Perishables on Hand

1. Storage space

2. Limits on total value of inventory prescribed by management

3. Desired frequency of ordering

4. Usage

5. Purveyors’ minimum order requirements


Suppliers to Foodservice Operators

1. Wholesalers

2. Local Producers

3. Manufacturers

4. Packers

5. Local farmers

6. Retailers

7. Cooperative associations


Centralized Purchasing

Advantages: Foods and beverages can be purchased at lower

prices because of volume Desired quality can be obtained more readily

because the steward has a greater choice of markets Foods can be obtained that meet specs Larger inventories can be maintained, ensuring

reliable supply to individual units Possibility of dishonest purchasing in individual units

are greatly reduced


Centralized Purchasing

Disadvantages: Each unit must accept the standard item in

stock and has little freedom to purchase for its own particular needs

Units can’t take advantage of local specials Menus are ordinarily standardized, limiting

the individual unit managers’ freedom


Means of Obtaining Price Quotes

1. Telephone

2. Fax

3. Quotation sheets obtained by mail

4. Fax modem

5. Information supplied by salespersons

6. Direct computer links with purveyors via the internet or dedicated telephone line


Necessary Receiving Standards

1. The quantity delivered should be the same as the quantity listed on the Steward’s Market Quotation List and the invoice

2. The quality delivered should conform to the establishment’s specifications

3. The prices on the invoice should match those circled on the Steward’s Market Quotation List


Sample Invoice

Meats R’ Us777 Cow Pasture Way

Bulls tail, IOTo: Grandview Bistro Date: October 3, 200X

Quantity Unit Description Unit Price Amount20 lbs. Beef tenderloin 9.20 184.0020 lbs. Leg of lamb 12.40 248.00

$432.00


Inventory Control

Regardless of the methods used by employees to requisition food and beverage products, or management to issue these, inventory levels will be affected.

It will be your responsibility and that of your purchasing agent to monitor this movement and purchase additional products, as needed.

Re-stocking the inventory is critical if product shortages are to be avoided and if product necessary for menu item preparation is to be available.


Inventory Control

Operators must be careful not to overload storage capacity. Increased inventory of items generally leads to greater spoilage and loss due to theft.

Shelf life is the amount of time a food item retains its maximum freshness, flavor, and quality while in storage. The shelf life of food products varies greatly.

The cost to the vendor for frequent deliveries will be reflected in the cost of the goods to the operator.


Inventory levels are determined by a variety of factors such as:

1. Storage capacity

2. Item perishability

3. Vendor delivery schedule

4. Potential savings from increased purchase size

5. Operating calendar

6. Relative importance of stock outages

7. Value of inventory dollars to the operator


Receiving Standard Procedure

1. Verify the quantity, quality, and price for each item conforms exactly to the order placed

2. Verify invoice with rubber invoice stamp

3. List foods delivered each day on the receiving Clerk’s Daily Report for that day

4. Forward paperwork to proper personnel

5. Move food to appropriate storage areas


The Invoice Stamp Provides for:

1. Verification of the date food received

2. Signature of the receiving clerk who vouches for the accuracy of the order

3. Steward’s signature, acknowledging delivery of food items

4. Food controller’s verification calculations are correct on the invoice

5. Signatory approval of the bill for payment by an authorized individual before a check is drawn


Receiving Clerk’s Daily Report

Directs – foods that extremely perishable by nature, purchased daily.– For immediate use– Considered to be issued on delivery– Go directly onto today’s food cost

Stores – perishable but have a relatively longer shelf life.– Not for immediate use– Included on food cost when they are issued


Training for Receiving

The great problem in employing receiving personnel is with the vast amount of knowledge of foods these workers require

This may explain why some restaurants do not require quality checks upon delivery

Someone has to do it!!! If not your customers will!!!

Food Purchasing Control

Documents

john wiley sons

quantity of food

order copyright

food items

quality of food

reorder quantity copyright

inventory levels

accountable copyright