Process How Do I Actually Buy This Stuff

Chapter 6Ordering ProcessHow Do I Actually Buy This Stuff? Chapter Outline Categorize Your ProductsOrder SizesOrder RecordContacting VendorsLearning Objectives Categorize products before ordering.Determine the optimal order size for products.Choose an ordering approach aligned with the organization’s needs.Negotiate an ordering system with chosen purveyors.Prepare purchase records.Categorize Your Products Sort into three categoriesPerishable products (short-life)Center-plate items (expensive ingredients)Everything elseCategorize Your Products Oder Perishable and center-plate items as often as possibleDaily? PerhapsIncreased carrying cost if items sit aroundOrder everything else as seldom as storage allowsOrder Size Use-based System of OrderingPhysical inventory Forecast needs for the upcoming periodCalculate expected product useSubtract what you have on handAdd a little safety stockOrder SizeTypical ExamplePrecut sirloin steaksAnticipate serving 60025 on handOrder 575 plus a few moreSome safety stock built-in: can’t order a portion of a case for exampleOrder Size For “Everything Else” Par-Stock Best SystemDetermine how much you will use in next three to six monthsSet a minimum amount of product needed on hand (re-order point)Subtract the minimum (the amount you have on hand) from the par stock for order sizeOrder SizeTo Keep in Mind:Much can change in three to six monthsMake sure menu or operational changes haven’t eliminated need for a productMaybe there is a better deal from another vendor or a substitute is availableOrder Record Keep Records of What is OrderedWhen Order ArrivesIs it the right brand?Is it the right size?Is it actually what you ordered at all?Contact VendorsOnline OrderingAlways open for businessKnow what is available (or on back order)Staff members may be authorized to order limited amountsSearch features allow for easy product comparisonsContact VendorsTelephoneGood for emergency ordersComplaintsMistakes are more likelyIn PersonInfrequentIntroduce new products or specialsContact Vendors Will-call BuyingUsually for small stopsSend in order by phone or fax and then pick it up, or show up and go shoppingCan place orders with Costco, Sam’s Club, Smart & FinalContact VendorsStanding OrderOrder is placed when the driver arrivesConvenientNot available for all productsUsually good for dairy, bread, breakfast pastries, soda pop syrup, etc.Contact Vendors Farmers’ MarketWater markets – foods come in from around the worldSave moneyBest, freshest productsContact Vendors AuctionsGood for small wares and equipmentReverse auction – online, let it be known what you are seeking (make sure your specifications are accurate)