Eighth Edition
Purchasing
Selection and Procurement for the Hospitality Industry
ANDREW HALE FEINSTEIN AND JOHN M. STEFANELLI
© 2011 John Wiley and Sons, Inc.
All Rights Reserved
CHAPTER
The Organization and
Administration of
Purchasing
© 2011 John Wiley and Sons, Inc.
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6
YOU SHOULD BE ABLE TO:
• Describe the methods used to plan and
organize the purchasing activities of a
hospitality operator.
• Recognize the issues involved in
administering purchasing activities.
© 2011 John Wiley and Sons, Inc.
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YOU SHOULD BE ABLE TO
(CONT.):
• Differentiate the purchasing organizational
pattern between small independent,
medium independent, and multiunit
hospitality operations.
• Explain the advantages and
disadvantages of centralized purchasing
© 2011 John Wiley and Sons, Inc.
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THE ADMINISTRATIVE STAGES OF
PURCHASING
•
•
•
•
•
•
•
Planning
Organizing
Staffing
Training
Budgeting
Directing
Controlling – direct vs. indirect
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PLANNING
• Objectives of purchasing
Maintain adequate supply
Minimize investment
Maintain quality
Obtain lowest possible edible-portion (EP)
cost
Maintain competitive advantage
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ORGANIZING
• Independent Organizations
• Chain Operations
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INDEPENDENT OPERATIONS
• Independent operations
Small
Medium-sized
Large
Co-op
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CHAIN OPERATIONS
• Local unit level
• Company-owned stores
• Centralized purchasing
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STAFFING
Process of recruiting, hiring, and training
personnel to perform specific tasks in an
organization.
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TRAINING
Entry level
• Job and company orientation
• Formal instruction
• On-the-job training
© 2011 John Wiley and Sons, Inc.
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TRAINING (CONT.)
• Professional Training Options
National Restaurant Association
National Restaurant Association
Educational Foundation (NRAEF)
Institute of Supply Management (ISM)
North American Association of Food
equipment Manufacturers (NAFEM)
© 2011 John Wiley and Sons, Inc.
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BUDGETING
Budgeting – a realistic statement of
management’s goals and objectives,
expressed in financial terms.
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CONTROLLING
Controlling – systems and procedures
used by managers to ensure that the
actual costs of doing business are
consistent with the expected (or budgeted
or theoretical) costs.
© 2011 John Wiley and Sons, Inc.
All Rights Reserved