Food Purchasing and Receiving Control

Chapter 4Food Purchasing and Receiving ControlPrinciples of Food, Beverage, and Labor Cost Controls, Ninth EditionWho does the purchasing?OwnersManagersChefStewardOne person responsible so they can be held accountableResponsibility for PurchasingPerishables; those items that are typically fresh foods, and have a relatively short shelf lifeNon-perishables; those food items that have a relatively longer shelf lifeGroceriesStaplesStoreroom itemsPerishables & Non-perishablesQuality of food purchasedQuantity of food purchasedPrices at which food is purchasedDeveloping Standards and Standard Procedures for PurchasingThey force owners or managers to determine exact requirements in advanceThey are often useful in menu preparationThey eliminate misunderstandings between stewards and purveyorsAllows for true competitive biddingEliminates need for detailed verbal descriptionsThey facilitate checking food as it is receivedUses for Standard Purchase SpecificationsSteward’s market quotation list - a form often used as a tool by food purchasers for;Taking daily inventory of perishablesDetermining suitable order quantitiesRecording market quotationsSelecting vendorsPar stock – maximum quantity that should be on hand at any given timeSteward’s Market Quotation ListPeriodic 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 orderPeriodic Order MethodPerpetual inventory method: Par stockReorder point= Subtotal+ Normal usage until delivery= Reorder quantityPerpetual Inventory MethodStorage spaceLimits on total value of inventory prescribed by managementDesired frequency of orderingUsagePurveyors’ minimum order requirementsDeterminants for Maximum Quantity of Perishables on HandWholesalersLocal ProducersManufacturersPackersLocal farmersRetailersCooperative associationsSuppliers to Foodservice OperatorsAdvantages:Foods and beverages can be purchased at lower prices because of volumeDesired quality can be obtained more readily because the steward has a greater choice of marketsFoods can be obtained that meet specsLarger inventories can be maintained, ensuring reliable supply to individual unitsPossibility of dishonest purchasing in individual units are greatly reducedCentralized PurchasingDisadvantages:Each unit must accept the standard item in stock and has little freedom to purchase for its own particular needsUnits can’t take advantage of local specialsMenus are ordinarily standardized, limiting the individual unit managers’ freedomCentralized PurchasingTelephoneFaxQuotation sheets obtained by mailFax modemInformation supplied by salespersons Direct computer links with purveyors via the internet or dedicated telephone lineMeans of Obtaining Price QuotesThe quantity delivered should be the same as the quantity listed on the Steward’s Market Quotation List and the invoiceThe quality delivered should conform to the establishment’s specificationsThe prices on the invoice should match those circled on the Steward’s Market Quotation ListNecessary Receiving StandardsMeats R’ Us777 Cow Pasture WayBulls tail, IOTo: Grandview Bistro Date: October 3, 20XX Quantity Unit Description Unit Price Amount 20 lbs. Beef tenderloin 9.20 184.00 20 lbs. Leg of lamb 12.40 248.00 $432.00Sample InvoiceRegardless 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 ControlOperators 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 Control1. Storage capacity2. Item perishability3. Vendor delivery schedule4. Potential savings from increased purchase size5. Operating calendar6. Relative importance of stock outages7. Value of inventory dollars to the operatorInventory levels are determined by a variety of factors such as:Verify the quantity, quality, and price for each item conforms exactly to the order placedVerify invoice with rubber invoice stampList foods delivered each day on the receiving Clerk’s Daily Report for that dayForward paperwork to proper personnelMove food to appropriate storage areasReceiving Standard ProcedureVerification of the date food receivedSignature of the receiving clerk who vouches for the accuracy of the orderSteward’s signature, acknowledging delivery of food itemsFood controller’s verification calculations are correct on the invoiceSignatory approval of the bill for payment by an authorized individual before a check is drawnThe Invoice Stamp Provides for:Directs – foods that extremely perishable by nature, purchased daily.For immediate useConsidered to be issued on deliveryGo directly onto today’s food cost Stores – perishable but have a relatively longer shelf life.Not for immediate useIncluded on food cost when they are issued Receiving Clerk’s Daily ReportThe great problem in employing receiving personnel is with the vast amount of knowledge of foods these workers requireThis may explain why some restaurants do not require quality checks upon deliverySomeone has to do it!!!If not your customers will!!!Training for Receiving© John Wiley & Sons, Inc. 2009