Purchasing - Chapter 26: Services

Services26YOU SHOULD BE ABLE TO:Identify management considerations surrounding the selection and procurement of services.List and describe the types of services that might be purchased by a hospitality operator.Outline the general procedures used when purchasing services.YOU SHOULD BE ABLE TO (CONT.)Create a specification outline for services.Explain security issues that may arise when purchasing services.Describe the major selection factors for services.MANAGEMENT CONSIDERATIONSFixed vs. variable costsShould I buy or should I do it myself?Outsourcing?Lease contractsHiring contract workersTYPICAL SERVICESWaste Removal What is included with CAM feesPickup scheduleGrease trapsRecyclingFinancial BankingLoansPayroll managementTYPICAL SERVICES (CONT.)GroundskeepingCommon in CAMLandscapingSnow removalBe specificPest ControlTYPICAL SERVICES (CONT.)AdvertisingNewspaper and magazineRadio and televisionBrochures and flyersPhonebookTypically cost is based on circulationSponsorship of a local teamTYPICAL SERVICES (CONT.)Consulting DesignersFeasibility researchersComputer specialistsEnvironmental assessorsDecorating and remodelingMaintenanceEndless number of repairsTYPICAL SERVICES (CONT.)Vending machineInsuranceHealthcareProperty damageLiability InsuranceTYPICAL SERVICES (CONT.)PayrollControl payments to othersFederal taxesSocial Security taxMedicare taxAccurate reporting of payroll expenseControls skimming by payroll clerksTYPICAL SERVICES (CONT.)Laundry and linen You can buy your own and use a cleaning serviceYou can rent linenYou can buy your linen and create a cleaning facilityOtherCleaningKnife sharpeningSECURITY AND SERVICESWatch for scamsCheck bills for services and initialBeware of “extra” invoicesDon’t pay deposits to unknown suppliers