View
218
Download
4
Category
Tags:
Preview:
Citation preview
WELCOME
CHRM 2480
Inventory & Purchasing
Agenda
• Ground Rules
• Warm Up Activity
• Syllabus Review
• Purchasing Website
• NRAEF ManageFirst Program
• Chapter One – Introduction to Inventory & Purchasing
Ground Rules
• Be on time – start on time
• All cell phones, pagers and IPods should be turned off during class
• No Internet use during class, unless part of classroom activity
• Appreciate other points of view
• Respect others’ desire to learn
• End on time
Information Card
• Please fill out the following information on the index card– Side ONE
• Name
• Phone
• Email Address
– Side TWO• Business affiliation & current position
• Hospitality industry background
Warm Up Activity
• Break into pairs
• Interview each other – 2-3 minutes each person– Name, Occupation, Why are you taking
Purchasing Class, etc……
• Introduce each other to the group
Syllabus Review• Course Information
• Course Assessment
• Schedule of Assignments
• Projects (Individual & Group)
• Attendance Sheets
• Website• http://resource.mccneb.edu/ICA/CHRM2480
NRAEF ManageFirst Program Competency Guide
IS REQUIRED FOR THIS COURSE
How can this book help me?
Institute for the Culinary Arts – Metropolitan Community College
Part of a certificate program
Industry-driven
Resume builder
Institute for the Culinary Arts – Metropolitan Community College
Who is the NRAEF?
Educational arm of the National Restaurant Association
Bridge between academia and industry
Work with over 60,000 restaurant, hospitality and foodservice members companies
NRAEF ManageFirst Program Competency Guide
IS REQUIRED FOR THIS COURSE
Management-focused
Application-based, not just theory
Professional Profiles give you a “sneak peek” into the field
“Real world” activities help build job skills
Competency Guide Content
Institute for the Culinary Arts – Metropolitan Community College
NRAEF ManageFirst Program Competency Guide
IS REQUIRED FOR THIS COURSE
Validated by over 200 restaurant, foodservice and hospitality organizations
Resume builder
Tangible accomplishment
Can give you a hiring advantage over peers who didn’t use ManageFirst
How will this certificate help me?
Institute for the Culinary Arts – Metropolitan Community College
NRAEF ManageFirst Program Competency Guide
IS REQUIRED FOR THIS COURSE
ManageFirst ProfessionalTM (MFP®) Credential The MFP credential recognizes students as having the academic and practical knowledge they need to succeed in the restaurant, foodservice, and hospitality industry. To earn the MFP credential, students must:
•Pass four Core Credential exams and one Foundation/Elective exam •Provide documentation for 800 hours of industry work experience
MCC & ICA
NRAEF ManageFirst Core Credential TopicsCHRM 2475 Leadership: Hospitality & Restaurant ManagementCHRM 2460 Cost Management: Controlling Foodservice CostsCHRM 2470 Supervision: Human Resources Management & SupervisionCHRM 1020 Sanitation: ServSafe Food SafetyNRAEF ManageFirst Foundation TopicsCHRM 2480 Purchasing: Inventory and PurchasingCHRM 1140 Food Production: Food ProductionCHRM 2350 Nutrition: Nutition
Let’s Take a Break
Please be back in 10 minutes
OH 1-14
Introduction to Inventory and Purchasing
Inventory and Purchasing
1OH 1-14
OH 1-15
Chapter Learning Objectives
Define purchasing, procurement, and product selection.
Outline the objectives in the purchasing function.
Describe the importance of maintaining an operation’s competitive position.
List the types of goods and services that might be purchased by a foodservice organization.
OH 1-16
Purchasing vs. Procurement
Purchasing – to obtain products and services of a desired quality at a desired price.
Procurement – the entire process by which products and services are selected based on quality and cost, to include: what products and services are needed, the quality specifications, when the items will be needed, from which vendors you will purchase, managing the contracts, as well as establishing all the purchasing, receiving storing and issuing policies.
OH 1-17
Franchise vs. Independent
Franchise – a business purchased from a company along with the right to use that company’s name, logo and products. Provides for purchasing through franchisor’s central
commissary
Independent – stand alone operation Cooperative buying or co-op buying occurs when
independent operators combine their purchasing power to cooperatively purchase all goods and services as a collective group in order to get lower pricing
OH 1-18
Economies of Scale
Franchise owners may purchase either through their commissaries or through approved vendors
Independent owners may purchase through a co-op or independently
Profit is earned after all operating expenses have been paid by either operation
OH 1-19
Goals of the Purchasing Function
1. Maintain adequate supply.
2. Maintain quality standards.
3. Minimize investment.
4. Maintain an operation’s competitive position.
5. Obtain the lowest possible edible portion (EP) or as served (AS) price.
OH 1-20
Purchasing Impacts
The availability of items for sale:
Too few items means product outages
Too many items means spoilage, waste, and theft
OH 1-21
Maintain Adequate Supply
Utilize customer count histories.
Sources of data include: The point-of-sale (POS) system
Guest checks
Physical counts
Count customers by day part.
OH 1-22
Maintain Adequate Supply continued
Monitor popularity index of items sold.
The popularity index measures the popularity of a specific menu item in relation to other items in its category.
The popularity index also measures the popularity of one menu category relative to other categories.
OH 1-23
Maintain Adequate Supply continued
Additional areas of concern include:
Vendor delivery schedules
Availability of items from vendors
External factors that can influence item sales
OH 1-24
Maintain Quality Standards
Foodservice managers maintain quality by:
Following the operation’s specifications (specs) on each menu item or ingredient purchased
Clearly communicating these standards to current and potential vendors
OH 1-25
Maintain Quality Standards continued
Customers expect the same quality product each time they visit their favorite foodservice operations.
OH 1-26
Minimize Investment
Tying up excessive dollars in inventory can damage a foodservice operation by restricting the amount of cash available for bill payment.
Ideal inventory levels are directly related to cash availability and to storage capability.
OH 1-27
Minimize Investment continued
In most cases, prices increase rather than decrease. As a result, effective foodservice managers: Minimize investment by purchasing the maximum
amount of quality product available at the minimum price possible.
Negotiate reduced prices for large quantity purchases.
OH 1-28
Maintain an Operation’s Competitive Advantage
Shop around for best pricing
Choose vendors who: Deliver frequently
Deliver at convenient hours
Can deliver in an emergency outage situation
Provide flexible payment options
Deliver consistent quality
OH 1-29
Obtain the Lowest Possible EP or AS Price
EP = Edible portion price
AS = As served price EP and AS refer to the price of an item after all trim
and waste has been taken into account. Example: peeled, cubed potatoes
AP= As purchased price AP refers to the price of an item before any trim or
waste are considered. Example: unpeeled, whole potatoes
OH 1-30
Comparison of AP and EP (AS) Methods
OH 1-31
Mismanaging the Purchase Function
Leads to product outages
Results in lost sales
Alienates customers
Ties up excessive amounts of cash
Increases operating (food and beverage) costs
OH 1-32
What to Buy
Food items
Alcoholic beverages
Nonalcoholic beverages
Nonfood items
Furniture, fixtures, and equipment (FF&E)
Business supplies and services
Support services
Maintenance services
Utilities
Foodservice managers buy many items including:
OH 1-33
Buying Food Items
Meat
Poultry
Eggs
Processed foods
Fish
Dairy
Produce
Dry and canned goods
OH 1-34
Buying Alcoholic Beverages
Spirits
Beer
Wine
OH 1-35
Buying Nonalcoholic Beverages
Soda
Coffee
Tea
Juice
Bottled water
OH 1-36
Buying Nonfood Items
Linens and uniforms
China and glassware
Bar supplies
Paper goods
Cleaning supplies
Menus and beverage lists
Candles
Flowers
Music and entertainment
Kitchen utensils and supplies
OH 1-37
Buying Furniture, Fixtures, and Equipment
Tables, chairs, and barstools
Lighting fixtures
Bars
Cooking equipment
Refrigeration equipment
Plumbing fixtures
Heating, ventilation, air conditioning (HVAC)
Entertainment pieces
OH 1-38
Buying Business Supplies and Services
Office equipment and supplies
Cash registers
POS systems
Computers
Credit card processors
Financial and legal services
Insurance
Marketing and advertising
OH 1-39
Buying Support Services
Linen and uniform rental
Waste removal
Flower services
Music services
Pest control
Parking and valet services
OH 1-40
Buying Maintenance Services
Cleaning services
Plumbing repair
HVAC repair
Groundskeeping
Painting
Carpentry
Equipment maintenance
Equipment repair
Equipment replacement
OH 1-41
Buying Utilities
Gas
Oil heating
Electricity
Water
Sewage services
Telephones
Internet access
OH 1-42
How Would You Answer the Following Questions?
1. A (popularity/frequency) index can be used to help estimate how many of a specific menu item are likely to be sold.
2. Which of the following is not a goal of the purchasing function:
A. Obtain the lowest possible EP price.B. Maintain adequate supply.C. Maximize investment.D. Maintain quality standards
3. A goal of a quality purchasing program is that of maintaining an operation’s __________ advantage.
4. The cost of most AP food products is higher than their AS cost. (True/False)
OH 1-43
Chapter Learning Objectives— What Did You Learn?
Define purchasing, procurement, and product selection.
Outline the objectives in the purchasing function.
Describe the importance of maintaining an operation’s competitive position.
List the types of goods and services that might be purchased by a foodservice organization.
OH 1-44
Key Term Review
As purchased (AP) price
As served (AS) price
Cash position
Competitive advantage
Cooperative or co-op buying
Covers
Customer count history
Economies of scale
OH 1-45
Key Term Review continued
Edible portion (EP) price
Franchise
Popularity index
Procurement
Product selection
Profit
Purchasing
Vendor
OH 1-46
Next Week
Read Chapter Two
Recipes Due 5 total recipes
Units of Measure Worksheet
Group Presentation work
Recommended