The Concepts of Selection and Procurement

2. 1 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 – simply paying for an item or service; too restrictive • Selection – choosing an item or service from a number of alternatives • Procurement – obtaining goods and services • Determining need • Administering purchase contract • Completing purchase • Receiving and storing the shipment

5. 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

6. Types of Hospitality Operations

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