FOOD CONTROL CYCLE
Chapter 2
FOOD CONTROL CYCLE
Purchasing Control Aims of Purchasing Policy
Job Description of Purchase Manager/Personnel
Types of Food Purchase
Quality Purchasing
Food Quality Factors for different commodities
Definition of Yield
Tests to arrive at standard yield
Definition of Standard Purchase Specification
Advantages of Standard Yield and Standard Purchase Specification
Purchasing Procedure
Different Methods of Food Purchasing
Sources of Supply
Purchasing by Contract
Periodical Purchasing
Open Market Purchasing
Standing Order Purchasing
Centralized Purchasing
Methods of Purchasing in Hotels
Purchase Order Forms
Ordering Cost
Carrying Cost
Economic Order Quantity
Practical Problems
Purchasing Control
requires a good amount of attention to the purchasing procedures of materials relating to cost, quality,
volume, time, and delivery of materials. Purchase control starts with the issue of materials requisition
and ends with the receipt of materials and payment of the cost of the materials.
Aims of Purchasing Policy
food costs does not go high
a) Aims -
The primary aim in purchasing of food is to obtain the best quality of merchandise, based on specifications
established at the most favorable price.
b) Purchasing staff -
Purchasing is 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. The person responsible for purchase is also responsible for receiving, storing and issuing. In large hotels, there is a full time
purchase manager/officer responsible for all purchases – F&B commodities and non-consumable. In
small hotels, the storeroom items (food) are purchased by an assistant manager, and perishables (food) such as meat, poultry, fish, vegetables, etc. are purchased by the chef.
c) Source of Supply –
A catering establishment depending on its size, type and style and also on the quantity and quality of
commodities required decides on the source of supplies, they may be –
i) direct purchase in cash from market,
ii) through suppliers – on contract & in cash,
iii) Direct from wholesalers.
d) Selection of supplier -
In case of selection of a supplier, a great deal of exercise and detailed enquires have to be made –
i) details about the firm, to find its reputation,
ii) information from other customers about their product and services,
iii) recent price lists,
iv) trade terms and conditions such as cash discount, trade discount, etc.,
v) sample of products to check quality,
vi) a visit to the supplier‟s firm,
vii) minimum order level,
viii) ordering procedures,
ix) delivery procedures,
x) part deliveries or standing orders,
On selection, the suppliers are put on an approved “suppliers‟ list” and periodically they are evaluated on –
i) price performance
ii) quality performance
iii) delivery performance
Job Description of Purchase Manager/Personnel
Job description
Purchasing managers are responsible for buying the best quality equipment, goods and services
for a company or organization at the most competitive prices. They work in a wide range of sectors for many different organizations. The purchasing manager oversees supply chain management and
procurement, possibly on a worldwide scale. They need to be good at negotiating, networking and dealing with numbers, as well as dealing with other factors such as sustainability, risk management and ethical issues. Purchasing and supply management is an important role for any business or organization. More than two thirds of revenue can be spent on buying the company's products or services, meaning the purchasing manager can make a real difference in cost saving and profit.
Work activities:
His duties carried out by a purchasing manager depend largely on the business functions, size and
location of the employing organization. The level of responsibility held by the purchasing manager will also influence responsibilities. Tasks typically involve:
i) Forecasting levels of demand for services and products to meet the business needs and keeping
a constant check on stock levels;
ii) Conducting research to ascertain the best products and suppliers in terms of best value, delivery
schedules and quality;
iii) Liaising between suppliers, manufacturers, relevant internal departments and customers;
iv) Identifying potential suppliers, visiting existing suppliers, and building and maintaining good
relationships with them;
v) Negotiating and agreeing contracts and monitoring their progress, checking the quality of
service provided;
vi) Processing payments and invoices;
vii) Keeping contract files and using them as reference for the future;
viii) Forecasting price trends and their impact on future activities;
ix) Giving presentations about market analysis and possible growth;
x) Developing an organization‟s purchasing strategy;
xi) Producing reports and statistics using computer software;
xii) Evaluating bids and making recommendations based on commercial and technical factors;
xiii) Ensuring suppliers are aware of business objectives;
xiv) Attending meetings and trade conferences;
xv) Training and supervising the work of other members of staff.
Types of Food Purchase
i) Perishables – these are those items that have a short useful life after they are received. They
are best to be procured on a daily basis with 1-3 days stock in hand. E.g. – vegetables, dairy
products, etc.
ii) Non – Perishables - these are those items that have a longer shelf life. They can be stored for
weeks or even months. E.g. – cereals, pulses, etc.
Quality Purchasing
and the F & B Manager as per the catering policy, the menu requirements and its price range, which
should be stated in the Standard Purchase Specification (SPS). The quality to be purchased should be
stated in terms of grade or brand.
E.g. – Tomato Ketchup - Kissan
Prawn – Grade A
Food Quality
Factors for different commodities:
The food quality factor is mainly concerned with the food i.e.:
Texture
Composition
Keeping qualities
Flavor
Smell etc.
The food quality factors for certain commodities are as follows:
A) FRUITS&VEGETABLES:
Count & weight
Wastage in terms of peel.
Shape and size
Color
Firmness
Smell
Taste
B) CANNED FOODS:
Drained weight.
Density(juices etc)
Color
Taste and appearance
Yield
DEFINITION OF YEILD:
Yield has two meanings that seem quite different: "an amount" or "to give way." The yield of the recipe was twelve brownies. To avoid being tripped, Mary was forced to yield to the children on her way to the brownie plate. While these meanings seem quite different, they both essentially mean "to give." The recipe gives twelve brownies to those who follow it, and Mary is giving up her right to go first. Yield can also mean the rate of return on an investment. It is the maximum usable amount that is obtainable from a particular product.
TESTS TO ARRIVE AT A STANDARD YEILD:
Usually yield tests are performed on food bought as purchased and need to be converted to ready to
cook.
Items received already proportioned need not undergo any yield test.(soybean, cashew etc)
Some foods received ready to cook might need yield tests.
Yield test tells us:
1. Yield of kg, liters, grams, portions and so on.
2. Cost per kg, ltr, gm and so on.
Yield tests are pre control technique because we know the cost of the item and we can adjust the menu selling price before serving the item. The objective of yield testing is simply to discover the respective yields of whole range of commodities available for any one purpose and to determine the unit cost concerned.
Example of test to arrive at standard yield
a) BUTCHERY TEST b) COOKING TEST
1. Waste 1. Cooking time
2. Useable meat 2. Cooking losses
3. Bones 3. Tate after cooking
4. No. of portions 4. Appearance after cooking
5. Fat amount and color 5. Flavor after cooking
6. Color of meat flesh 6.Shrinkage
7. Bone structure
8. Color of bones
Definition of Standard Purchase Specification
Standard Purchase Specification (SPS) is concise descriptions of quality, size, weight or count factors
desired for a particular item.An SPS must contain –
i) Definition of each item,
ii) Grade or brand name of the items,
iii) Size, weight or count
iv) Unit against which prices should be quoted,
v) Special note for the commodity,
vi) Photograph of the ideal / standard item, e.g. – table apple, cherry tomato.
Objectives of SPS
To establish a suitable buying standard for a particular commodity for the catering
establishment,
To furnish to the suppliers in writing in specific terms the requirements of the catering
establishment, To help in deciding the price of a commodity,
To obtain a standard product,
To measure the performance against the standard product.
Advantages of SPS
Establishing a buying standard of a commodity so that a standard product is available for the
customer,
Inform the supplier in writing, by drawing, or with a photograph or describing precisely what is
required,
Provides detailed information to the receiving department and store as to the standard of foods
to accept,
Makes everyone aware of the differences that can occur because of the difference in size,
weight, quality and quantity of a product.
The specifications act as an aide memoire to all concerned of what was agreed.
Purchase Procedure
The purchase procedure will depend upon he nature, size, standard, location of the establishment and
the forecast of future requirements.
The purchase procedure has the following steps –
Preparing standard purchase specification
Contacting new suppliers
Taking quotations from both new and approved suppliers
Selecting suppliers
Discussing and deciding delivery needs with the suppliers
Placing purchase order form.
Sources of Supply
An establishment depending upon its size type and style and also on its quantity and quality of
commodities required decides its sources of supply. It may be direct purchase in cash form market orsuppliers on contract basis or directly from the whole seller. In case of selection of a supplier a great
deal of exercises and detailed enquires have to be made on selection, the supplier are put on an
approved suppliers list and periodically they are evaluated on price, quality and delivery performances.
Different Methods of Food Purchasing
Contract Purchasing:-
an agreed upon price which is advantageous for both.
The specific period contract - it determines the source of supply and the price of goods for a
stated period i.e. for 3 to 6 months suitable for items which has fairly stable price like bread,
butter, milk etc.
Specific quality contract - it aims to secure continuity of supply of a given quality of an
essential item of an agreed price over a particular trading period- suitable for fruits,
vegetables etc.
Periodical Purchasing:-
weekly / fortnightly / monthly basis. This is suitable for groceries.
Daily Market List / Daily Market Quotation
This method is used for purchasing perishables on a daily basis. A daily market list is prepared
by the executive chef on the basis of quick stock taking of food. On receipt of the „Daily Market List‟ the purchase officer contacts approved suppliers for their prices and then orders for the supplies.
Cash & Carry:-
It is purchasing from the market at a competitive price, and the buyer can personally check the
quantity and quality of each item. The purchaser has to pay in cash and has also to arrange for the
goods to be transferred to the establishment.
‘Paid Reserve’
In this the caterer buys in advance a large quantity of items like beef, jumbo prawns, etc. to
cover the needs of future months and stocks of which is kept with the supplier, and the supplier is paid for this. The caterer requisitions his requirements from the supplier.
Cost Plus
In this case, the approved supplier is paid exactly the same price that he has paid for the commodities plus an agreed percentage to include the cost of handling, delivery charges and a margin of profit. Suitable for welfare catering establishments.
One Stop Shopping / ‘Total Supply’
There are some suppliers who are able to offer a full supply service of all commodities. The
advantage of this system is that the establishment has to negotiate with one supplier, a reduced volume of paper work and fewer deliveries.
Centralized Purchasing
relayed to a central office. The central office decides the total requirements of all units and then makes total purchases either, for delivery to the individual units by he dealer, or, for centralized delivery.
Sealed Bids / Tender Purchase
In this procedure sealed quotations are required from one or more suppliers and orders are
placed where the terms are of best advantage to the buyer, after all elements of price, quality, yield and service are considered. For a Govt. institute the offer goes to the lowest bidder.
Standing Order
bread, etc.) can be asked for a supply without securing price quotation first. However, it is very
important that the latest prices of these items are available to the person when checking the bill for
these items.
Additional Methods
EMERGENCY PURCHASE
To purchase an item on an emergency basis, a risk purchase form has to be filled up& sent to the
supplier.
TOTAL SUPPLY METHOD
There are some suppliers who are able to offer supply service of all the commodities. The advantage of this system is that the company has to negotiate with one supplier & there is a reduced volume of paper work.
PURCHASE ORDER FORMS
The purchase order is made in 1 + 5 copies…
Original copy--- to the supplier
1st copy ------ to accounts
2nd copy ------ to purchase department
3rd copy ------ receiving department
4th copy ------ indenting department
5th copy ------ master copy.
Ordering Cost :-
transportation, etc.
Carrying Cost :–
establishment, e.g. – manpower, transportation, etc.
Economic Order Quantity (EOQ): –
situation. the basis of the EOQ is the usage rate, ordering cost and the time taken. Basically the focus is on maintaining optimum levels of each units are there in each lot and the speed at which they are used up from the stores.
E.O.Q =⎷ (2A x Cp) / Sc.
Where A = Annual Usage, Cp= Cost of Purchase, Sc=Storage Cost (per unit). The size of the economic order quantity depends upon
Inventory Carrying Cost.
Cost of Purchasing.
Consumption
Interest on Capital
Quantity discount.
Sometimes Economic Order Quantity is called Re-Order Quantity.
Purchase Order Forms
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