OH 4-1 Agenda Chapter 4 Inventory Project Invoices/Inventory Book set-up Physical Inventory: Week of...
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Transcript of OH 4-1 Agenda Chapter 4 Inventory Project Invoices/Inventory Book set-up Physical Inventory: Week of...
OH 4-1
Agenda Chapter 4
Inventory Project
Invoices/Inventory Book set-up
Physical Inventory: Week of April 6th ; wear uniform or chef coat, appropriate shoes, hair restraints (bring)
Inventory copy, and report due April 14th
Reminder: schedule receiving with Metro chef
Summary of entire inventory project (due by April 28)
Work on group presentations
OH 4-2
Key Term Review
Acceptable trim
Consumer trends
Count
Edible yield
Individually quick frozen (IQF)
Intended use
Make-or-buy analysis
Market form
Packer’s brand name
Portion-controlled (PC)
OH 4-3
Key Term Review continued
Product specification
Quality standards
Shelf life
Stockout
Throughput
Value-added product
OH 4-4
The Procurement Process and Supplier Selection
Inventory and Purchasing
4OH 4-4
OH 4-5
Chapter Learning Objectives
Outline the process for procuring products and services.
Differentiate between perishable and nonperishable food products.
Understand the importance of assessing and documenting purchasing requirements.
Define perpetual and physical inventory.
Identify optimal sources of suppliers.
OH 4-6
Channel of Distribution
Sources – growers, manufacturers, processors
Intermediaries – Distributors: specialty, full-line, broadline Brokers: do not buy or sell – they promote Manufacturers Representatives/ Agents Commissaries Whole Sale Clubs – Buying Clubs
Retailers (Hospitality Operations)
Consumers
OH 4-7
The Procurement Process
The procurement process consists of
Purchasing the ideal quality of product or service
From the ideal supplier
For the ideal edible portion (EP) cost
At the ideal time
OH 4-8
The Procurement Process continued
Making product (or service) selections does not complete the procurement process!
The procurement process is only completed when products are properly Received
Stored
Issued
OH 4-9
The Procurement Process continued
The steps in the procurement process:
1. Assessing
2. Selecting
3. Ordering
4. Receiving
5. Storing and issuing
OH 4-10
The Procurement Process continued
Step 1 – Assess needs
Perishable products Meats
Fish
Poultry
Dairy and eggs
Produce
Beverage alcohols
Nonperishable Products Are often nonfood items
Are purchased less frequently
Usually have higher costs
Must be purchased with a long-term view toward replacement and repair
OH 4-11
The Procurement Process continued
Step 2 – Select criteria and quality standards
When selecting products and services, as well as the vendors who will be chosen to supply them, purchasers must consider a large number of factors.
OH 4-12
Selection Factors
Intended use
Exact name
Packer’s brand name
Government grade
Product/container size
Type of container
Vendor reputation
Minimum weight per case
Product yield
Point of origin
Product form
Color
Ripeness (and ripening process used)
Preservation method
OH 4-13
The Procurement Process continued
Step 3 – Define ordering procedures
Operational needs
Purchase requisitions
Purchase orders
OH 4-14
The Procurement Process continued
Ordering products and services can be done
In person
By telephone
Via fax
Via email
Online (Internet)
OH 4-15
The Procurement Process continued
Step 4 – Define receiving procedures
The receiving step presents the operation with its final opportunity to ensure that quality standards have been met.
OH 4-16
The Procurement Process continued
Professional receiving depends upon:
A suitable receiving dock area that is
Clean
Secure
Well lit
Well located
OH 4-17
The Procurement Process continued
Professional receiving depends upon:
Appropriate receiving equipment
Temperature probes
Accurate scales
Pallet jacks
OH 4-18
The Procurement Process continued
Professional receiving depends upon:
Capable receiving personnel
Remember that learning to identify quality food products requires the operation to have a clearly stated definition of quality for each item ordered.
OH 4-19
The Procurement Process continued
Professional receiving depends upon:
A receiving schedule
Receiving schedules must be acceptable to both the operation and the vendor.
OH 4-20
The Procurement Process continued
Professional receiving depends upon:
Copies of purchase orders available to receiving personnel
It is impossible to ensure purchased items have been properly delivered if the items originally purchased are unknown.
OH 4-21
The Procurement Process continued
Professional receiving depends upon:
Copies of product specifications readily available to receiving personnel
OH 4-22
Invoice vs. Blind Receiving
Invoice
Receiving clerk checks order against P.O. and invoice for Quality
Quantity
Prices
Invoice also checked against P.O.
Blind
Receiving clerk des not know what should be delivered
Must weigh, count and record all merchandise
Added control, but very time consuming and $$$
OH 4-23
Additional Receiving Duties
Date the delivered items
Price all of the delivered items
Create bar codes
Apply meat tags
Housekeeping
Update AP prices
Backhaul recyclables
OH 4-24
Good Receiving Practices
Beware of excess ice, watered-down products, wrapping paper and packaging that can add dead weight to delivered products. This “tare weight” should be subtracted from the gross weight to compute net weight of merchandise purchased by weight.
Check the quality under the top layer of products. Examine packages for leakage or other forms of water damage, as
well as swollen cans. Check expiration dates and dating codes. Weigh items separately Be wary of drivers eager to help carry items to storage areas Spot check portioned products for portion weights Check merchandise for re-freezing or “slacked out”- supposedly
fresh but actually frozen thawed and made to appear as if it was fresh
OH 4-25
Common Receiving Forms
Request for Credit Memorandum Used when reject merchandise
Pick Up Memorandum Used when you want to return merchandise
previously accepted
Transfer Slips Used to transfer between units (franchise
operations)
OH 4-26
The Procurement Process continued
Step 5 – Define storing and issuing procedures
Adequate storage settings include:
Adequate facility and storage space
Adherence to temperature requirements
Storage facilities located in close proximity to the production units and receiving area
Appropriate storage area regulations
OH 4-27
The Procurement Process continued
Equipment Needs for Storage Areas Shelving: ideally modular, for refrigeration best is
made from durable plastic or stainless steel coated with vinyl, for dry storage chrome or galvanized metal is ok but stainless steel is preferred
Dunnage Racks: for stacking cases of product and items issued in bulk, i.e. bags of flour, sugar etc.
Wall Racks: spices
Can Racks
Scales, work tables, sinks, thermometers
OH 4-28
The Procurement Process continued Other Storage Considerations:
Group similar category items together such as bakery supplies, canned vegetables, pasta, oils, seasonings, paper goods, frozen meats, frozen vegetables, dairy items, etc.
Store glass products and other breakables close to the floor
Store items that weigh more that 30 lbs at waist level or below and lighter items on upper shelves
Use dunnage racks for cases and heavier bulk items
Shelves and bins should be labeled
Rooms should have enough lighting to see all products
Equipment for reaching/moving product such as stepladders, carts and stools should be available but out of the way
Doors should be wide enough to allow carts and pallets through
OH 4-29
The Procurement Process continued
Step 5 – Define storing and issuing procedures continued
Issuing perishables
In most cases, perishables are issued directly to the departments that will use them.
Issuing nonperishables
In most cases, nonperishable food and nonfood items are sent to a central storage facility.
OH 4-30
Agenda Chapter 4
Inventory Reports Red Lobster – Brigida & Erin
Ted’s Nebraska Grill – David Campbell
Blue Sushi – Brandon Thomas
McKenna’s – Meredith Beaver
Omaha Hilton – Stephanie Hatch
Stephanie Gigax
Red Robin - Kyle Shoemaker
Village Inn – Jessica Thomas
Michelle Hood
OH 4-31
Agenda Inventory Project
Invoices/Inventory Book set-up
Physical Inventory: Week of April 6th ; wear uniform or chef coat, appropriate shoes, hair restraints (bring)
Inventory copy, and report due April 14th
Reminder: schedule receiving with Metro chef
Summary of entire inventory project (due by April 28)
Chapter Five
Work on group presentations
OH 4-32
Supplier Selection
Supplier types
One-stop shop—the operation selects one (or two) suppliers to meet all of the operation’s buying needs.
Bid buying—the operation allows for various suppliers to periodically respond to a request-for-bid or request-for-price (RFP).
OH 4-33
Supplier Selection Criteria
Supplier facilities must be sanitary.
Facilities that supply meat, poultry, and eggs must be inspected by the U.S. Department of Agriculture (USDA).
Suppliers must comply with applicable local, state, and federal laws.
Suppliers should be able to provide a list of references.
Suppliers must have adequate delivery equipment (trucks and temperature control units).
Supplier personnel should practice proper personal hygiene.
OH 4-34
Contract Points to Include
After selecting a supplier:
Arrange a supplier visit to the operation to ensure the supplier understands the unique features of your operation.
Review the receiving area for adequacy, exits, entrance doors, and the like.
Establish allowable delivery times.
OH 4-35
Supplier-Related Terms to Know
Independent delivery services
Stockless purchasing
Cost-plus purchasing
Standing orders
Return and replacement policy
Credit terms
OH 4-36
Cost of Paying Early
If You Pay $50,000 Two Weeks Early and Bank Pays 3.5% interest $50,000 x 3.5% = $1,750
$1,750/52 weeks = $33.65 lost interest per week
$33.65 x 2 weeks - $67.30 lost interest
OH 4-37
Cost of Paying Late
Incur Interest and Penalty Charges
Damage Credit Rating
Suppliers Could Insist on C.O.D.
Legal Difficulties
OH 4-38
How Would You Answerthe Following Questions?
1. A (purchase requisition/purchase order) is an internal purchasing document.
2. Which of the following is not an important procurement step? A. PayingB. OrderingC. StoringD. Assessing
3. Which items are typically delivered directly to the department that will use them?
4. Suppliers of meats, poultry, and eggs voluntarily choose to have their facilities inspected by the USDA who may/will at the same time grade their products. (True/False)
OH 4-39
Inventory Project – 100 points
Students will be required to set up an Inventory Book from invoices provided by the instructor (in class directions will be provided) – 20 points
Handout & Instructions
OH 4-40
Inventory Project – 100 points
Week of April 6th, each student will participate in the process of physical inventory at a site to be chosen by the student and submit a copy of the inventory sheets. Students must wear ICA uniform; chef coat, appropriate shoes and hair restraints ( bring your hat or hairnet)– 30 points.
An interview will be conducted by the students at the inventory site with the purchasing manager or general manager – 20 points. Interview questions must include the topics on the interview sheet provided.
The students will present a 5 minute group report of their inventory experience to the class on April 14th, the week following the physical inventory, including the information from the manager interview – 10 points.
The copy of the inventory and report are due April 14th
OH 4-41
Inventory Project – 100 points
Students will participate in the receiving function for one vendor order (to be scheduled with Metro Kitchen Chef or if student can receive an order at place of employment, this may also be done if arranged in advance with instructor) – 10 points
The form for the receiving component was included in the Purchasing Project Worksheet or can be found on Sharepoint.
The entire project is due April 28th
Any questions of the Inventory Project?
OH 4-42
Chapter Learning Objectives— What Did You Learn?
Outline the process for procuring products and services.
Differentiate between perishable and nonperishable food products.
Understand the importance of assessing and documenting purchasing requirements.
Define perpetual and physical inventory.
Identify optimal sources of suppliers.