CHAPTER 5

PURCHASING & STORAGE

F&B MANAGEMENT - 2020
THE PURCHASING
PROCEDURE,
PRICE & QUALITY
PERFORMANCE
INTRODUCTION
Today, purchasing is recognized as having an overwhelming
impact on the bottom line of the organization. It has a direct
impact on the two forces that drive the bottom line: sales and
costs. Purchasing is becoming a core competency of the firm,
finding and developing suppliers and bringing in expertise
that is highly valued by the organization. Purchasing is
generally responsible for spending more than 50 percent of
all the revenues the firm receives as income from sales.
INTRODUCTION

Purchasing can be defined as ‘a function

concerned with the search, selection,
purchase, receipt, storage and final use of a
commodity in accordance with the catering
policy of the establishment’.
PURCHASING
PROCEDURES
MODEL
PURCHASING
RESPONSIBILITIES
• Ultimate responsibility with the Food and
Beverage Manager.
• Smaller establishments have the Chefs or the
Steward in charge of the Purchases.
• Slightly bigger properties need a Purchasing
agent member of the staff on rotation.
• In large hotels the Purchase department headed
by Manager Purchase and staff.
SELECTING SUPPLIERS

Essentially supplier evaluations should be

based on the consistency of:
• Correct quality products.
• Reasonable prices.
• Prompt delivery.
• Service including product information
• Location
• Quality of the suppliers operation.
• Technical ability of the suppliers staff.
• Compatibility.
• Honesty and fairness.
• Delivery Personnel
 PURCHASING PROPER
QUALITY
• Quality in the purchasing function refers to the
suitability of the product for its intended use.
• First estimate the value in terms of
adequacy...which means whether the product is
giving value for its price.
• Accurately describe the minimum quality
requirements.
 PURCHASING PROPER
• QUALITY
Quality in the purchasing function refers to the
suitability of the product for its intended use.
• First estimate the value in terms of
adequacy...which means whether the product is
giving value for its price.
• Accurately describe the minimum quality
requirements.
• Realistically define needs, yet not limit the
number of acceptable suppliers.
• Make specification for most used or high
volume items.
 STANDARD
PURCHASE
SPECIFICATIO
N
STANDARD PURCHASE
SPECIFICATION
Standard purchase specification are
concise description of quality, size, weight,
or count factor desired for a particular
item, Specification buying will give
uniformity and consistency
to purchasing and receiving, that will aid to
maintain a desire food cost and create
a standard product.
RECEIVING, STORING
& ISSUING
INTRODUCTION
In many catering establishments the
receiving department is considered to be a
very important one, It is important to realize
that all goods being received into an
establishment have a monetary value and
that it is essential to ensure that exactly this
value in goods is properly accounted for
and received.
The main objectives are to ensure that for all establishments are:
• The quantity of goods delivered matches the quantity that has been ordered. This means
that goods may have to be weighed or counted.
• The quality of goods delivered is in accordance with the specification stated.
• The prices where stated are correct.
• When the quantity or quality (or both) of the food delivered
• is not in accordance with the purchase order or an item is omitted from the order a credit
note is provided by the driver. When this happens it is important to inform the end user as
soon as possible.
• An accurate record is made on the delivery note, recording details of the delivery including
temperature and condition of packaging.
• Goods should be decanted into clean storage containers where appropriate, for example,
FOUR STEP
CONTROL
PROCESS
• Establishing Standards for Receiving

The primary purpose of receiving control is to verify that the

quantity, quality, and price of each item delivered conforms to the
order placed.

• The Invoice

An invoice is usually presented to the receiving clerk in duplicate

by the person making the delivery, who will expect the receiving
clerk to sign and return the second copy.

• Establishing Standard Procedures for Receiving

Verifying Quantity, Quality, and Price

• Training for Receiving

The great problem faced by those who attempt to employ or train

skilled receiving personnel lies with the vast amount of knowledge
of foods these workers should have. They should be able to
recognize whether particular items meet the established standard
STORING
CONTROL
The main objective of a food store is to
ensure that an adequate supply of foods for
the immediate needs of the establishment
are available at all times. Food storage
comes under food safety regulations and
forms part of the organizations HACCP
policy.
THE BASIC GOAL OF STORAGE
MANAGEMENT IS TO PREVENT LOSS
OF MERCHANDISE DUE TO:

• Theft
• Pilferage
• Spoilage
PERISHABLES AND NON
PERISHABLES :

The types of foods to be purchased for any

foodservice enterprise can be divided into two
categories: perishables and non perishables.
Because there are significant differences
between the approaches to purchasing foods in
these categories, it is important to differentiate
between them.
Perishable foods are those items, typically fresh
foods, that have a comparatively short useful life
after they have been received. Various kinds of
lettuce and fresh fish, for example, begin to lose
their quality very quickly.

Non perishable foods are those food items that

have longer shelf lives. Frequently referred to as
groceries or staples, they may be stored in the
packages or containers in which they are
received.
 STORING
GUIDELINES
For commercial kitchens, food safety is a very
important concern. Because of that, below we’ve
come up with 8 ways food service operators can
consider in order to ensure they store food safely.
• The FIFO Rule
• Meat Needs To Be Placed As Low As Possible
• Food Should Be Stored In Air Tight Containers
• Store The Food Off The Floor
• Temperature Control
• Never Overload Your Refrigerator
• Make Sure Floors And Shelves And Organized And
Clean
 ISSUING
CONTROL
A WELL-DESIGNED ISSUING SYSTEM HAS
THE FOLLOWING OBJECTIVES :
• To limit access to storage areas to authorized
staff members only.
• To match items removed from storage with
actual production requirements.
• To assess quantities and costs of products
removed from storage. This record keeping
becomes important when updating perpetual
inventory records. This record is required for
assessing costs of issues to calculate daily
• the requisition forms can be used to provide
information for daily cost calculations or to
update perpetual inventory records.
• Issuing should be limited to specified times
• beverages to replenish bar inventories are
issued either at the beginning or end of each
bar shift
THE FOOD REQUISITION / ISSUE
PROCESS
• The form identifies each item to be withdrawn
from storage
• The purchase unit size of each item needed
• The quantity of each item needed is based
upon the recipes to be used during the required
time period minus any products already
withdrawn from inventory and available in
production
PRODUCT SECURITY CAN BE ACHIEVED IF A FEW
PRINCIPLES ARE OBSERVED :
• Food, beverages, and supplies should be requisitioned only
as needed based on approved production schedules.
• Required items (issues) should be issued only with
management approval.
• If a written record of issues is to be kept, each person
removing food, beverages, or supplies from the storage area
must sign, acknowledging receipt of the products.
• Products that do not ultimately get used should be returned
to the storage area, and their return recorded.
FOOD & BEVERAGE TRANSFERS
Intra unit Transfers
Between Bar and Kitchen
– Cooking wines and spirits
– Fruits, juices and dairy products
Between Kitchen and Kitchen
– Large hotels that operate more than one kitchen
Interunit Transfers
Transfers of food and beverage between units in a chain
INVENTORY
CONTROL
An inventory is everything that is found within your
establishment. Produce, dry stores, pots and pans,
uniforms, liquor, linens, or anything that costs money to
the business should be counted as part of inventory.
Kitchen items should be counted separately from the
front of house and bar inventory and so forth.
EFFECTIVE INVENTORY CONTROL CAN BE BROKEN
DOWN INTO A FEW IMPORTANT STEPS:
• Set up systems to track and record inventory
• Develop specifications and procedures for ordering and
purchasing
• Develop standards and procedures to efficiently receive
deliveries
• Determine the frequency and processes for reconciling
inventory
• Analyze inventory data and determine any areas for
improvement
INVENTORY RECORD
KEEPING
A perpetual inventory : simply a running
balance of what is on hand. Perpetual
inventory is best done by keeping records
for each product that is in storage
Perpetual inventory form.
INVENTORY RECORD
KEEPING
A physical inventory requires that all items in
storage be counted periodically. To be an effective
control, physical inventory should be taken at
least monthly. The inventory records are kept in a
spreadsheet or in another system reserved for
that purpose.
Thank you!
Any questions?