Purchasing A Brief Overview of the Purchasing Process

Purchasing A Brief Overview of the Purchasing Process…

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

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

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!

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

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

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

Pars Prevent: 1. 2. 3. Panic purchasing- which is usually at a higher price Selling out of an item Product spoilage

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? ?

Invoice

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

Types of receiving 1. 2. 3. 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)

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

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

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

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

Purchase History

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

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

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%

Why is Yield So Important?

Why yield is important… 1. 2. 3. 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.

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?

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

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?

True Cost of Onion: Cost / Yield = True Cost. 93 /. 9 = True Cost $1. 03 = True Cost

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