|
Preface |
|
ix |
|
|
1 The Concepts of Selection and Procurement |
|
1 |
(12) |
|
|
Introduction and Purchasing, Selection, and Procurement Definitions |
|
|
2 |
(3) |
|
|
Sustainability and Corporate Social Responsibility |
|
|
5 |
(1) |
|
|
Purchasing Functions in Different Types of Hospitality Operations |
|
|
5 |
(6) |
|
|
|
11 |
(1) |
|
|
|
11 |
(1) |
|
|
|
12 |
(1) |
|
|
|
12 |
(1) |
|
2 Technology Applications in Purchasing |
|
13 |
(16) |
|
|
Technologies that Distributors Use |
|
|
14 |
(3) |
|
|
Technologies that Hospitality Operators Use |
|
|
17 |
(6) |
|
|
|
23 |
(2) |
|
|
|
25 |
(1) |
|
|
|
25 |
(1) |
|
|
|
26 |
(1) |
|
|
|
26 |
(3) |
|
3 Distribution Systems |
|
29 |
(22) |
|
|
Distribution System for Food, Nonalcoholic Beverages, and Nonfood Supplies |
|
|
30 |
(6) |
|
|
Distribution System for Beer, Wine, and Distilled Spirits |
|
|
36 |
(3) |
|
|
Distribution Systems for Furniture, Fixtures, and Equipment and for Services |
|
|
39 |
(2) |
|
|
What Happens Throughout the Channel of Distribution? |
|
|
41 |
(2) |
|
|
The Buyer's Place in the Channel of Distribution |
|
|
43 |
(1) |
|
|
The Optimal Economic Values and Supplier Services |
|
|
44 |
(2) |
|
|
|
46 |
(1) |
|
|
|
47 |
(1) |
|
|
|
48 |
(1) |
|
|
|
48 |
(3) |
|
4 Forces Affecting the Distribution Systems |
|
51 |
(34) |
|
|
Economic and Intangible Forces |
|
|
52 |
(5) |
|
|
Political and Ethical Forces |
|
|
57 |
(4) |
|
|
Legal Force Related to Food Distribution and Labeling |
|
|
61 |
(8) |
|
|
|
69 |
(5) |
|
|
|
74 |
(4) |
|
|
|
78 |
(1) |
|
|
|
79 |
(1) |
|
|
|
80 |
(1) |
|
|
|
80 |
(5) |
|
5 An Overview of the Purchasing Function |
|
85 |
(20) |
|
|
|
86 |
(9) |
|
|
Research Activities and Projects |
|
|
95 |
(2) |
|
|
|
97 |
(2) |
|
|
|
99 |
(1) |
|
|
|
100 |
(1) |
|
|
|
101 |
(2) |
|
|
|
103 |
(1) |
|
|
|
103 |
(2) |
|
6 The Organization, Administration, and Evaluation of Purchasing |
|
105 |
(26) |
|
|
|
106 |
(1) |
|
|
|
107 |
(5) |
|
|
|
112 |
(4) |
|
|
Directing and Working with Others |
|
|
116 |
(1) |
|
|
Budgeting and Controlling Inventories |
|
|
117 |
(1) |
|
|
Establishing and Following Selection and Procurement Policies |
|
|
118 |
(7) |
|
|
|
125 |
(1) |
|
|
|
126 |
(2) |
|
|
|
128 |
(1) |
|
|
|
129 |
(2) |
|
7 The Purchase Specification: An Overall View |
|
131 |
(24) |
|
|
Why Hospitality Operations Use Specifications |
|
|
132 |
(1) |
|
|
What Information Does a Spec Include? |
|
|
133 |
(7) |
|
|
What Influences the Types of Information Included on the Spec and Who Writes Them? |
|
|
140 |
(3) |
|
|
Potential Problems with Specs |
|
|
143 |
(3) |
|
|
The Optimal Quality to Include on the Spec |
|
|
146 |
(1) |
|
|
|
146 |
(1) |
|
|
Is the Quality Available? |
|
|
147 |
(1) |
|
|
|
148 |
(3) |
|
|
|
151 |
(1) |
|
|
|
152 |
(2) |
|
|
|
154 |
(1) |
|
|
|
154 |
(1) |
|
8 The Optimal Amount |
|
155 |
(22) |
|
|
The Importance of the Optimal Inventory Level |
|
|
156 |
(1) |
|
|
Correct Order Size and Order Time: Par Stock Approach |
|
|
157 |
(4) |
|
|
Correct Order Size and Order Time: The Levinson Approach |
|
|
161 |
(3) |
|
|
A Practical Approach to Determining Correct Order Size |
|
|
164 |
(1) |
|
|
Correct Order Size and Order Time: A Theoretical Approach |
|
|
165 |
(6) |
|
|
Considerations When Using the Theoretical Approach |
|
|
171 |
(2) |
|
|
|
173 |
(1) |
|
|
|
173 |
(2) |
|
|
|
175 |
(1) |
|
|
|
176 |
(1) |
|
9 Determining Optimal Purchase Prices and Payment Policies |
|
177 |
(36) |
|
|
Optimal Price and the Influence of AP Prices |
|
|
178 |
(2) |
|
|
How AP Prices Are Determined |
|
|
180 |
(2) |
|
|
Ways to Reduce AP Price and Increase Value: Discounts |
|
|
182 |
(3) |
|
|
Ways to Reduce AP Price and Increase Value: Purchasing and Receiving Procedures |
|
|
185 |
(7) |
|
|
Ways to Reduce AP Price and Increase Value: Additional Methods |
|
|
192 |
(5) |
|
|
|
197 |
(4) |
|
|
Determining the Optimal Payment Policy |
|
|
201 |
(1) |
|
|
The Objective of Payment Policy |
|
|
201 |
(1) |
|
|
Cost of Paying Sooner Than Necessary |
|
|
202 |
(1) |
|
|
|
203 |
(1) |
|
|
|
203 |
(1) |
|
|
The Mechanics of Bill Paying |
|
|
204 |
(2) |
|
|
|
206 |
(1) |
|
|
|
207 |
(3) |
|
|
|
210 |
(1) |
|
|
|
211 |
(2) |
|
10 The Optimal Supplier |
|
213 |
(30) |
|
|
Developing an Approved Supplier List |
|
|
214 |
(1) |
|
|
Trimming the Initial List |
|
|
215 |
(1) |
|
|
|
216 |
(2) |
|
|
Supplier Selection Criteria: Type and Size of Supplier |
|
|
218 |
(2) |
|
|
Supplier Selection Criteria: Ordering and Delivery Policies and Procedures |
|
|
220 |
(5) |
|
|
Supplier Selection Criteria: Price and Payment Policies and Procedures |
|
|
225 |
(2) |
|
|
Supplier Selection Criteria: Other Factors |
|
|
227 |
(2) |
|
|
Most Important Supplier Selection Criteria |
|
|
229 |
(1) |
|
|
|
229 |
(2) |
|
|
Salesperson-Buyer Relations |
|
|
231 |
(2) |
|
|
Evaluating Suppliers and Salespersons |
|
|
233 |
(4) |
|
|
|
237 |
(1) |
|
|
|
238 |
(1) |
|
|
|
239 |
(1) |
|
|
|
240 |
(3) |
|
11 Typical Ordering Procedures |
|
243 |
(14) |
|
|
|
244 |
(2) |
|
|
|
246 |
(1) |
|
|
|
247 |
(4) |
|
|
|
251 |
(1) |
|
|
Expediting and Streamlining the Ordering Procedure |
|
|
251 |
(3) |
|
|
|
254 |
(1) |
|
|
|
254 |
(1) |
|
|
|
255 |
(1) |
|
|
|
256 |
(1) |
|
12 Typical Receiving Procedures |
|
257 |
(24) |
|
|
The Objectives of Receiving |
|
|
258 |
(1) |
|
|
|
259 |
(3) |
|
|
|
262 |
(7) |
|
|
Additional Receiving Duties |
|
|
269 |
(4) |
|
|
Alternative Receiving Methods |
|
|
273 |
(3) |
|
|
|
276 |
(1) |
|
|
|
277 |
(1) |
|
|
|
278 |
(1) |
|
|
|
279 |
(1) |
|
|
|
280 |
(1) |
|
|
|
280 |
(1) |
|
13 Typical Storage Management Procedures |
|
281 |
(24) |
|
|
The Objectives of Storage |
|
|
282 |
(2) |
|
|
What is Needed to Achieve Storage Objectives? |
|
|
284 |
(3) |
|
|
Managing the Storage Facilities |
|
|
287 |
(10) |
|
|
Exercising Tight Control Over the Stock and Analyzing the Value of Storage Management Procedures |
|
|
297 |
(4) |
|
|
|
301 |
(1) |
|
|
|
301 |
(2) |
|
|
|
303 |
(1) |
|
|
|
303 |
(2) |
|
14 Security in the Purchasing Function |
|
305 |
(22) |
|
|
|
306 |
(1) |
|
|
|
307 |
(4) |
|
|
Preventing Security Problems-Suppliers and Accounting and Inventory Procedures |
|
|
311 |
(4) |
|
|
Preventing Security Problems-Employees |
|
|
315 |
(3) |
|
|
Preventing Security Problems-Facilities and the Owner-Manager's Role |
|
|
318 |
(3) |
|
|
|
321 |
(1) |
|
|
|
321 |
(1) |
|
|
|
322 |
(1) |
|
|
|
323 |
(4) |
|
15 Fresh Produce |
|
327 |
(32) |
|
|
The Importance and Challenges of Purchasing Fresh Produce |
|
|
328 |
(2) |
|
|
Primary Selection Factors |
|
|
330 |
(9) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
339 |
(5) |
|
|
|
344 |
(4) |
|
|
Procedures for Receiving, Storing, and Issuing Fresh Produce |
|
|
348 |
(6) |
|
|
|
354 |
(1) |
|
|
|
355 |
(1) |
|
|
|
356 |
(1) |
|
|
|
357 |
(2) |
|
16 Processed Produce and Other Grocery Items |
|
359 |
(30) |
|
|
Management Considerations |
|
|
360 |
(6) |
|
|
Primary Selection Factors |
|
|
366 |
(4) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
370 |
(7) |
|
|
Supplier and AP Price Factors |
|
|
377 |
(2) |
|
|
Purchasing Processed Produce and Other Grocery Items |
|
|
379 |
(3) |
|
|
Procedures for Receiving, Storing, and Issuing Processed Produce and Other Grocery Items |
|
|
382 |
(2) |
|
|
|
384 |
(1) |
|
|
|
385 |
(3) |
|
|
|
388 |
(1) |
|
|
|
388 |
(1) |
|
17 Dairy Products |
|
389 |
(22) |
|
|
Management Considerations |
|
|
390 |
(2) |
|
|
Primary Selection Factors |
|
|
392 |
(6) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
398 |
(3) |
|
|
Purchasing Dairy Products |
|
|
401 |
(2) |
|
|
Procedures for Receiving, Storing, and Issuing Dairy Products |
|
|
403 |
(4) |
|
|
|
407 |
(1) |
|
|
|
408 |
(1) |
|
|
|
409 |
(1) |
|
|
|
410 |
(1) |
|
18 Eggs |
|
411 |
(16) |
|
|
Primary Selection Factors |
|
|
412 |
(4) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
416 |
(5) |
|
|
|
421 |
(2) |
|
|
Procedures for Receiving, Storing, and Issuing Eggs |
|
|
423 |
(1) |
|
|
|
424 |
(1) |
|
|
|
425 |
(1) |
|
|
|
426 |
(1) |
|
|
|
426 |
(1) |
|
19 Poultry |
|
427 |
(22) |
|
|
Primary Selection Factors |
|
|
428 |
(6) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
434 |
(4) |
|
|
Supplier and AP Price Factors |
|
|
438 |
(1) |
|
|
Procedures for Purchasing, Receiving, Storing, and Issuing Poultry |
|
|
439 |
(5) |
|
|
|
444 |
(1) |
|
|
|
445 |
(2) |
|
|
|
447 |
(1) |
|
|
|
447 |
(2) |
|
20 Fish |
|
449 |
(30) |
|
|
The Importance and Challenges of Purchasing Fresh Fish |
|
|
450 |
(1) |
|
|
Primary Selection Factors |
|
|
451 |
(10) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
461 |
(5) |
|
|
|
466 |
(4) |
|
|
Procedures for Receiving, Storing, and Issuing Fish |
|
|
470 |
(4) |
|
|
|
474 |
(1) |
|
|
|
475 |
(1) |
|
|
|
476 |
(1) |
|
|
|
477 |
(2) |
|
21 Meat |
|
479 |
(36) |
|
|
Management Considerations |
|
|
480 |
(6) |
|
|
Primary Selection Factors |
|
|
486 |
(6) |
|
|
U.S. Government Grades and Packer's Brands |
|
|
492 |
(5) |
|
|
Size, Form, Packaging, and Related Considerations |
|
|
497 |
(5) |
|
|
|
502 |
(2) |
|
|
Procedures for Receiving, Storing, and Issuing Meat |
|
|
504 |
(5) |
|
|
|
509 |
(1) |
|
|
|
510 |
(2) |
|
|
|
512 |
(1) |
|
|
|
513 |
(2) |
|
22 Beverages |
|
515 |
(38) |
|
|
Management Considerations for Beverage Alcohols |
|
|
516 |
(10) |
|
|
|
526 |
(6) |
|
|
AP Price and Supplier Factors |
|
|
532 |
(1) |
|
|
Purchasing Beverage Alcohols |
|
|
533 |
(2) |
|
|
Procedures for Receiving, Storing, and Issuing Beverage Alcohols |
|
|
535 |
(5) |
|
|
Management Considerations for Nonalcoholic Beverages |
|
|
540 |
(1) |
|
|
Selection Factors for Nonalcoholic Beverages |
|
|
541 |
(4) |
|
|
Procedures for Purchasing, Receiving, Storing, and Issuing Nonalcoholic Beverages |
|
|
545 |
(3) |
|
|
|
548 |
(1) |
|
|
|
549 |
(2) |
|
|
|
551 |
(1) |
|
|
|
551 |
(2) |
|
23 Nonfood Expense Items |
|
553 |
(26) |
|
|
Management Considerations-Types of Nonfood Expense Items |
|
|
554 |
(5) |
|
|
Management Considerations-Price and Supplier Factors |
|
|
559 |
(2) |
|
|
Purchasing Nonfood Expense Items |
|
|
561 |
(2) |
|
|
Typical Nonfood Items-Cleaning and Maintenance Items |
|
|
563 |
(4) |
|
|
Typical Nonfood Items-Permanent and Disposable Ware and Utensils |
|
|
567 |
(5) |
|
|
Typical Nonfood Items-Fabrics and Paper Goods |
|
|
572 |
(3) |
|
|
|
575 |
(1) |
|
|
|
575 |
(2) |
|
|
|
577 |
(1) |
|
|
|
578 |
(1) |
|
24 Services |
|
579 |
(30) |
|
|
Management Considerations |
|
|
580 |
(4) |
|
|
General Procedures in Service Purchasing |
|
|
584 |
(1) |
|
|
Cleaning and Maintenance-Related Services |
|
|
585 |
(5) |
|
|
Other Facilities-Related Services |
|
|
590 |
(3) |
|
|
|
593 |
(5) |
|
|
Consulting, Financial, and Insurance Services |
|
|
598 |
(7) |
|
|
|
605 |
(1) |
|
|
|
605 |
(2) |
|
|
|
607 |
(1) |
|
|
|
607 |
(2) |
|
25 Furniture, Fixtures, and Equipment |
|
609 |
(34) |
|
|
Management Considerations |
|
|
610 |
(4) |
|
|
General Procedures in FFE Purchasing |
|
|
614 |
(2) |
|
|
Primary Selection Factors |
|
|
616 |
(4) |
|
|
Operating Characteristics |
|
|
620 |
(7) |
|
|
|
627 |
(6) |
|
|
Financing the FFE Purchase |
|
|
633 |
(6) |
|
|
|
639 |
(1) |
|
|
|
640 |
(2) |
|
|
|
642 |
(1) |
|
|
|
642 |
(1) |
|
Glossary |
|
643 |
(32) |
|
Index |
|
675 |
|
