Chapter 2The Optimal Supplier

The Initial Supplier Survey

First, list all possible suppliers

Next, trim the list by establishing a set of criteria

– Product Lists– AP prices– Supplier services– Location– Lead times– Purchasing policies

The Fixed Bid Vs. The Daily Bid

Fixed bid– Used for large quantities of

products purchased over a long period of time

– Typically a formal procedure– Request for bid includes specs

for bidding process

Daily bid– Used for fresh items– Called “daily quote buying”

Selecting a Supplier When Using Bid-buying

Fixed Bid– Distribute bid requests to

potential suppliers– Determine what supplier provides

you with the optimal value for a product or a set of products

Daily bid– Review bid sheets– Determine what supplier provides

you with the optimal value

Other Supplier Selection Criteria

Cost-plus purchasing One-stop shopping Stockless purchasing Cash-and-carry Standing orders Computer hookups Co-op purchasing Local or national source

Other Supplier Selection Criteria, Cont.

Delivery schedule Ordering procedures Credit terms Minimum order

requirements Variety of merchandise Lead time Free samples Returns policy Reciprocal buying Barter

Cooperation in bid procedures

Size of firm Number of back orders Substitution capability Buyout policy Suppliers facilities Long-term contracts Case price Bonded suppliers

Other Supplier Selection Criteria, Cont.

Consulting services Deposits required Willingness to sell storage Suppliers who own hospitality

operations Socially responsible suppliers References

Supplier-Buyer Relations

Supply house officers set the tone of their business– They set the overall sales strategies– They sponsor product and market research

Suppliers train their sales staffs Suppliers keep their salespersons’

promises.

Eco-Labels

are seals or logos indicating that an independent organization has verified that a product meets a set of meaningful and consistent standards for environmental protection and/or social justice.

DID YOU KNOW: The "free-range" label doesn’t

necessarily mean the animals went outdoors.

"Fair Trade Certified" means more than paying producers a fair wage.

Meat labeled as "natural" can contain artificial ingredients.

Certifier, Certification organization

Certifier evaluates a company wishing to put a particular label on its products, usually for a fee.

They verify that the products conform to the standards behind the label.

http://www.greenerchoices.org/eco-labels/productArea.cfm?ProductCategoryID=174&ProductAreaID=154

17 eco-food labels described http://www.mnn.com/food/healthy-eating/

stories/17-eco-food-labels-decoded

Fair Trade Organization

Was started to provide a fair alternative for small farmers by offering them a fair price for their products. It provides a partnership with individual farmers and cooperatives that is aimed at greater equality in international trade.

Black Gold follows an Ethiopian coffee producer's epic journey around the world as he attempts to get a fair price for his high quality coffee. The film highlights that the solution for Africa is in equitable TRADE and NOT AID.

Making Greener Choices

Foot Print Calculators Appliance Calculators Appliance Recycling Climate and energy basics And more:

http://www.greenerchoices.org/links.cfm

Green Shopping: Food & Beverage: http://www.greenerchoices.org/pcategories.cfm?pcat=food

Eco Restaurant Planning

http://vimeo.com/24211909 Francisville Eco-Restaurant

now open Showcase organic and

healthy food. Burger is topped with feta

and spinach and no fries = no fryer.

Wines/Beer are organic or sustainable.

2028 Fairmount Ave

How to make a Restaurant eco- friendly

Recycle Compost food items. Use compact florescent lighting. Cleaning supplies are chlorine free, non caustic, earth friendly. Become Styrofoam free and using biodegradable packaging. Oil recycling from fryers to make fuel such as diesel. Upgrade your appliances to energy star, low flow water consumption

dishwashers and toilets. Install low flow aerators on all sinks to limit water consumption. Purchase from sustainable food supply sources.

Green restaurant certified: http://www.thegreyplume.com/tgp_about_green_initiatives.php Dine Green: http://www.dinegreen.com/