food and beverage management
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Food and Beverage Management. Ch 8 Preparing for Production. The Flow of Food. Purchasing Receiving Storing Issuing Tracking and Control. Purchasing. Always purchase from a reputable Supplier - PowerPoint PPT PresentationTRANSCRIPT
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Food and Beverage Management
Ch 8 Preparing for Production
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The Flow of FoodPurchasingReceivingStoring IssuingTracking and Control
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PurchasingAlways purchase from a reputable SupplierAn Operation can save or lose money with a
Purchasign System – Directly affects the bottom line
Purchase systems includeRequisitionsPurchase ordersDelivery Invoices
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Purchasing Flow
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Goals of a Purchasing SystemBuy the right productBuy the right amountPay the right priceDeal with the right supplier
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Buying the Right ProductDevelop Purchase specifications
QualitySizeWeightRipeness
Needed for each important item (ex. Filet)Ex. – 8 up PSMO Choice Filet
Clearly communicated to Suppliers & Receivers
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Make or BuyConvenience Foods –Prepared off siteSome managers believe that quality is less than
on site prepMight be less costlyMay be easier to purchase, receive, store and
issue
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Make or Buy AnalysisExampleBloody Mary Mix
Purchase in 5 case lots - $31 case for 12 quart bottles
Cost per bottle = $2.45 after 5% discount on bulk purchase
Make on site – Ingredient cost use standard recipe = $1.81 per
quartLabor Cost = .31 per quart (15 minutes of labor)Total = $2.12 per quart
On site cost is $.33 cheaper than purchasing ready made
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Purchasing the Right QuantityCash Flow is adversely affected if inventory levels
are too highToo low – no product means lost sales and
unhappy customers
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Minimum Maximum OrderingUses par levels – the minimum level of stock
acceptablePar Levels are determined byLead time quantity – number of units that will be
used between the time the replacement stock is ordered and delivered
Safety Stock Level – in case of shortages, spoilage, etc
Get Bids from Several Suppliers
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Other Factors in Purchasing LevelsChanging PricesAvailable StorageStorage and handling costsWaste and SpoilageTheftMarket ConditionsQuantity discountsMinimum Order requirementsTransportation and deliveryOrder CostsFreshness -
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Paying the Right PriceGet bids from Several SuppliersNegotiateConsider lower quality productsDo you really have to buy it? Can it be made
better or cheaper on site?Combine OrdersRe evaluate high cost items, especially things
such as garnishes
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Paying the Right PricePay Cash – use discounts for paying promptlySpeculate on price trendsChange purchase unit sizeBe innovativeUse Promotional DiscountsBypass the supplier
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SuppliersLocationFacilityFinancial StabilityTechnical Knowledge of the staffHonesty and fairnessDependabilityFacility Inspections (own and regulatory)HACCP Programs
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Other ConcernsTheft
Track InventoryKickbacksFictitious Companies
EthicsDevelop standards and policies Integrity
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Receiving Inspect each delivery against POCompare delivered Product against specifications – weights,
etc. Inspect against Delivery invoice
Verify Price per unit (against PO) Verify math! If not delivered (or rejected) – get a credit memo (signed!)
Accept Product (or reject) If needed check temperatures Check for pests
Store – label and date (for FIFO)Complete reports (some PO ‘s are also HACCP Records)
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StorageSecurity includes:Lockable Storage areasPrecious storage Limited AccessEffective inventory control procedures
Perpetual inventory system
Central Inventory controlSecure DesignLighting and monitoring
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QualityRotate Food Stocks (FIFO)Store foods at proper temperaturesClean storage areas frequentlyEnsure proper ventilation and air circulation
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RecordkeepingPerpetual Inventory System
Similar to a checkbookConfirm at regular intervals (use different people)
Physical Inventory SystemTypically done once per month
Combination Systems
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Reducing Inventory CostsCarry a smaller amount of inventoryBe sure required levels are correctDecrease the number of items carriedRefuse to accept early deliveries
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Issuing ProductsIssue only on proper authorityDepends on system – Perpetual Inventory needs a
requisitionRequisitions should be entered daily
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Special Beverage ConcernsTypically buy by brand name
House or well brandCall brand Premium brands
Laws regarding suppliers vary by stateLaws regarding discounts vary by state Inventory turnover rates are lower
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Special Beverage ConcernsMore prone to theftAfter received – move immediately to storageAlways use secured storagePurchasing and receiving tasks should be
separatedIssue on a bottle for bottle basisMark bottles with dates and times.
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Technology and ControlE Commerce – facilitates ordering with suppliersJIT = Just in Time Inventory systemsOrdering Systems (FoodTrak) (www.foodtrak.com)Customized software systems integrating recipe
cards & purchasingUPC codes