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6. The Organization and Administration of Purchasing. You Should Be Able To:. Describe the methods used to plan and organize the purchasing activities of a hospitality operator. Recognize the issues involved in administering purchasing activities. You Should Be Able To (cont.):.

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you should be able to
You Should Be Able To:
  • Describe the methods used to plan and organize the purchasing activities of a hospitality operator.
  • Recognize the issues involved in administering purchasing activities.
you should be able to cont
You Should Be Able To (cont.):
  • Differentiate the purchasing organizational pattern between small independent, medium independent, and multiunit hospitality operations.
  • Explain the advantages and disadvantages of centralized purchasing
the administrative stages of purchasing
The Administrative Stages of Purchasing
  • Planning
  • Organizing
  • Staffing
  • Training
  • Budgeting
  • Directing
  • Controlling – direct vs. indirect
planning
Planning
  • Objectives of purchasing
    • Maintain adequate supply
    • Minimize investment
    • Maintain quality
    • Obtain lowest possible edible-portion (EP) cost
    • Maintain competitive advantage
organizing
Organizing
  • Independent Organizations
  • Chain Operations
independent operations
Independent Operations
  • Independent operations
    • Small
    • Medium-sized
    • Large
    • Co-op
chain operations
Chain Operations
  • Local unit level
  • Company-owned stores
  • Centralized purchasing
staffing
Staffing

Process of recruiting, hiring, and training personnel to perform specific tasks in an organization.

training
Training
  • Entry level
    • Job and company orientation
    • Formal instruction
    • On-the-job training
training cont
Training (cont.)
  • Professional Training Options
    • National Restaurant Association
    • National Restaurant Association Educational Foundation (NRAEF)
    • Institute of Supply Management (ISM)
    • North American Association of Food equipment Manufacturers (NAFEM)
budgeting
Budgeting

Budgeting – a realistic statement of management’s goals and objectives, expressed in financial terms.

controlling
Controlling

Controlling – systems and procedures used by managers to ensure that the actual costs of doing business are consistent with the expected (or budgeted or theoretical) costs.