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The Organization and Administration of Purchasing

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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The Organization and Administration of Purchasing

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  1. 6 The Organization and Administration of Purchasing

  2. 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.

  3. 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

  4. The Administrative Stages of Purchasing • Planning • Organizing • Staffing • Training • Budgeting • Directing • Controlling – direct vs. indirect

  5. Planning • Objectives of purchasing • Maintain adequate supply • Minimize investment • Maintain quality • Obtain lowest possible edible-portion (EP) cost • Maintain competitive advantage

  6. Organizing • Independent Organizations • Chain Operations

  7. Independent Operations • Independent operations • Small • Medium-sized • Large • Co-op

  8. Chain Operations • Local unit level • Company-owned stores • Centralized purchasing

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

  10. Training • Entry level • Job and company orientation • Formal instruction • On-the-job training

  11. 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)

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

  13. 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.

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