OH 3-1
Agenda
Chapter Two- Key terms review
Chapter Three – The Purchasing Function
Chapter Three – Key terms review
Chapter Four – The Procurement Process & Supplier Selection
Inventory Book Set-Up
OH 3-2
Key Term Review
Blanket order discount
Buyer’s authority
Buyer’s responsibility
Cash discount
Free sample
Job description
Job specification
Kickback
OH 3-3
Key Term Review continued
Promotional discount
Purchasing skill set
Quantity discount
Reciprocity
Steward sales
Volume discount
OH 3-4
Quality Standards in Purchasing
Inventory and Purchasing
3OH 3-4
OH 3-5
Chapter Learning Objectives
Identify and communicate quality standards.
Identify factors contributing to the establishment of quality standards.
State why it is important to convey and adhere to quality standards.
Describe buyer considerations when conducting a make-or-buy decision.
OH 3-6
Quality Standards
Identify and communicate in writing a record of purchasing criteria, product standards and specifications for
Managers
Vendors
Employees
OH 3-7
Quality Standards continued
Clearly communicate product and service standards and requirements to staff and suppliers to avoid ordering and shipping errors.
OH 3-8
Quality Standards continued
Identify an operation’s specific product or service requirements for bid purposes.
In most cases, bid buying results in Lower prices
Consistent quality
Reduced paperwork
Lower purchasing-related labor costs
OH 3-9
Quality Standards continued
Allow an operation to clearly identify acceptable replacement items
For use when Requested products are unavailable
Product demand exceeds requested product supply
OH 3-10
Quality Standards continued
Improve the ability of employees to identify and prepare menu items by providing Consistent yield
Predictable trim
Constant viscosity (thickness or flow)
Predictable plate coverage
OH 3-11
Determining Quality Standards
Quality standards are based upon the style of restaurant and its needs for products and services.
Resources available when developing quality standards include Purchasers
Suppliers (vendors)
In-company personnel
Outside consultants
OH 3-12
Product Specifications
Product specifications specify exactly what an operator is seeking to buy from its vendor.
In this case, the operator is the customer, and the vendor must fulfill the customer’s needs.
It is easiest to fulfill customers’ needs when they are clearly known!
OH 3-13
Product Specifications continued
An item’s intended use is its most important characteristic when specifying quality standards.
Intended use addresses In what form?
In what size?
At what temperature?
At what stage of processing?
In what packaging?
OH 3-14
Product Specifications continued
Specific information includes: Yield
Packaging
Color
Quality level
Grade
Count
Size
Temperature
Processing requirements
Shipping methods
OH 3-15
Product Specifications continued
The exact name is used to identify, as closely as possible, the desires of the buyer.
Food names may vary by region
May include sizes and other factors
OH 3-16
Product Specifications continued
Brands can be indicators of quality.
Operators may prefer to buy a brand name.
Guests may prefer to see brand name products served to them.
OH 3-17
Product Specifications continued
When products come in different packaging formats, product specifications must be very exact.
OH 3-18
Product Specifications continued
Item size will, in many cases, directly affect portion cost.
Size may refer to Weight
Volume
Count
OH 3-19
Product Specifications continued
Acceptable trim indicates the amount of allowable waste acceptable upon delivery.
Excessive trim will increase portion costs.
Excessive trim reduces profits.
Purchase prices typically increase as trim loss is reduced.
OH 3-20
Product Specifications continued
Grade is an indicator of quality.
The United States Department of Agriculture (USDA) grades are recognized standards in the foodservice industry.
In most (but not all) cases, grading is not mandatory.
OH 3-21
Product Specifications continued
Market form indicates how an item is processed prior to packaging.
Examples include Whole Diced Shredded Chopped Fresh Frozen
OH 3-22
Product Specifications continued
Color is an indicator of age and identification
Age examples include Green bananas Red strawberries
Identification examples include Green beans Red grapes
OH 3-23
Product Specifications continued
Accuracy in menu legislation requires that places of origin, if used on the menu, must correctly reflect the true origin of the item sold.
For example “Idaho Rainbow Trout” must actually come from
Idaho.
“New York Cheesecake” must come from New York.
OH 3-24
Product Specifications continued
When designating acceptable substitutes, it is always best not to reduce quality standards!
OH 3-25
Product Specifications continued
Unit Pricing Pricing by
The dozen The case at an agreed-upon case size Alternative units
Price Limits Buyers may predetermine the maximum
price (limit) they will pay. Examples include prices for fresh lobsters and other types of rare seafood.
OH 3-26
Product Specifications continued
Temperature control procedures
Room temperature
Refrigerator temperature
Frozen (freezer) temperature
OH 3-27
Factors Affecting Quality Standards
The item’s intended use
The operation’s concept and goals
The menu
The skill level of employees
OH 3-28
Factors Affecting Quality Standards continued
Budgetary constraints
Customer’s wants and needs
Seasonal availability
Availability of storage
OH 3-29
Make or Buy:The Case for Buying Food
Buying food in a partially or fully prepared state: Ensures consistency
May be cost effective because product waste is reduced
Saves time
Saves storage space
OH 3-30
Make or Buy:The Case for Making Food
Quality may be better.
Guests’ satisfaction may be higher.
Food costs are generally lower.
Signature dishes are easier to develop.
OH 3-31
1. Product (specifications/standards) identify the characteristics desired in a product or service purchased by a foodservice operation.
2. Which of the following is not a category typically used to develop product specifications?
A. BrandB. Delivery timesC. SizeD. Packaging
3. Employee __________ __________ is an important factor affecting quality standards.
4. The final quality of a “made from scratch” item will always exceed the quality of a purchased item. (True/False)
How Would You Answer the Following Questions?