The Concepts of Selection and Procurement

The Concepts of Selection and Procurement1YOU SHOULD BE ABLE TO:Define the terms “purchasing,” “selection,” and “procurement.”Distinguish between commercial and noncommercial hospitality operationsDifferentiate purchasing functions in different types of hospitality operations.IMPORTANT TERMSPurchasing – simply paying for an item or service; too restrictiveSelection – choosing an item or service from a number of alternativesProcurement – obtaining goods and servicesDetermining needAdministering purchase contractCompleting purchaseReceiving and storing the shipmentTHE BUYER’S JOBDetermining how much to buyDetermining the best priceDetermining the optimum time to make the purchaseDetermining which product or service meets the needs of the organizationTYPES OF HOSPITALITY OPERATIONSHospitality OperationsCommercialProfit-oriented OperationsNon-CommercialInstitutional OperationsMilitary OperationsMAJOR PURCHASING DISTINCTIONSIndependent OperationSmall “Owner-op”Medium sized operationLarge independentMulti-units and FranchisesCentral Commissaries