When you are out and around town this week, take notice of food service delivery trucks….

1. When you are out and around town this week, take notice of food service delivery trucks…. • Who has the cleanest trucks? • Who has the least desirable trucks?

2. Define the term purchasing • Define the term selection. • Define the term procurement. • Describe co-op buying. The Knowledge Within You, Lasts For A Life Time

3. What Affects Your Purchasing Activities? The Menu determines your purchasing needs The Standardized Recipe determines your specific purchasing needs. The Budget will determine your purchasing strategy. The inventory will affect your purchasing decisions.

4. Purchasing Objectives Name the five major objectives of the purchasing function • Maintain an Adequate Supply. • Minimize Investment. • Maintain Quality. • Obtain the Lowest Possible EP Cost. • Maintain the Company’s Competitive Position. Do you think that it is a good practice to allow the competition to “borrow a cup of sugar” once in a while? Define: Value Analysis, Sourcing, Plant Visits, Stock- Outs, Backdoor selling, Back Orders

5. List 3 critical issues that should be addressed in a procurement plan. • Making the purchase • Receiving and storing the shipment • Administering the purchase contract

6. Chapter 8 – Product Specifications • Why have Specs? • Who decides what to include on the specs? • What information does a spec include?

7. Product Specifications • Description of all the characteristics in a product required to fill certain production and / or service needs. • Use the USDA, vendors and industry sources to develop complete specifications.

8. Advantages to Specs • They serve as quality and cost control standards. • Help to avoid misunderstandings between buyers, suppliers, users and other company officials. • They allow someone else to fill in temporarily. • They serve as useful training devices. • They aid in the bidding process to level the playing field.

9. Who Is Involved With Specs? • The owner / manager or some other top official. • The buyer. • The end user • Some combination of the above.

10. What Information Does a Spec Include? • The spec may include any or all of the following: • Performance requirement • Exact name • The packer’s brand name • US Quality Grade (if appropriate) • Size Information • Acceptable Trim or Acceptable Waste • Package Size • Type of Package • Preservation and /or Processing Method • Point of Origin • Packaging Procedure

11. More Spec Information…. • Degree of Ripeness • Form • Color • Trade Association Standards • Approved Substitutions • Expiration Dates • Chemical Standards • Test or Inspection procedures • Cost and quantity Limitations • General Instructions • Specifics instructions to bidders

12. What Influences Types of Information Included on the Spec? • Company Goals and Policies • The time and money available • Production Systems the Hospitality Operation Uses • Storage facilities • Employee Skill Levels • Menu Requirements • Sales prices or budgetary limitations • Service Styles

13. Potential Problems With Specs • Additional considerations that add to cost but not value. • The specification is too rigid and does not allow for periodic revision. • All personnel should understand the specs and use them appropriately. • Even more problems arise with “bid buying”….

14. Bid Buying Potholes • Getting hit with the “lowball” • Inequality among bidders. • Specifications are too tight. • Advertising your own mistakes • Redundant favoritism • Scheduling several deliveries

15. Packer’s Brands • Food Producers use their own brand names. • Within Packer’s Brand name exists various levels of quality • Specific quality indicators – usually good, better and best. • Sysco Imperial • Sysco Classic • Sysco Reliance • Packer Brands that you think are Name Brands • Arrezio • Block n Barrel • Wholesome Farms

16. Fresh Produce Purchasing • Inherent Difficulties • Soil and climate conditions can effect quality • Seasonal changes, natural or manmade disasters and changes in demand can effect quality. • Quality is subjective – What looks good to your supplier may not look good to you. • Seasonal availability offers Best price, best quality and best selection

17. Selection Factors • Intended Use – get the right product for your application. • Exact Name – understand the terminology and varieties even within groups - Super Sweet Jubilee Corn, Russet Burbank Potatoes. • Government Inspection and Grades • Fancy – Top quality – about 1% of all produce. • No. 1 - Majority of items produced • Commercial • No. 2, No. 3 and Field Run

18. Selection Factors • Packers’ Brands - particular brand or packing process – Andy Boy Lettuce, Bolthouse Carrots. • Product Size – 4X5 tomatoes vs. 5X5 tomatoes • Size of Container – Breaking cases • Type of packaging material – adds or lessens cost • Packaging Procedure – • Minimum weight per case – Lettuce yields. • Product Yield • Point of Origin – Idaho potatoes, Florida oranges

19. Selection Factors • Color – • Product Form – Raw material or value added. Onions vs. Diced ¼” onions • Degree of Ripeness – shelf life Avocadoes, Bananas and Tomatoes • Ripening process used – Natural or Gas • Preservation Method – Effect of time and temperature on quality. • Trusting the Supplier – One stop shop or bid process.

20. Receiving Fresh Produce • Inspect delivery for completeness. • Conduct a visual inspection of the condition of the shipping cartons. • Conduct a visual inspection of items of lower layers. • Weigh cartons if necessary. • Randomly sample for count, size and quality. • Check invoice to be sure pricing is accurate.

21. Order Schedules • Help to promote efficient scheduling. • Plan weekly expenses. • Develop supplier relationships. • Understand lead times for different vendors.

22. Security In Inventory Function • Security Problems • Kickbacks • Invoice Scams • Supplier and Receiving Error • Inventory Theft • Inventory Padding • Inventory Substitutions • Segregating Operating Activities

23. Preventing Security Problems • Select honest suppliers Research suppliers • Employ honest employees Prosecute dishonest employees • Design facilities so that tight, effective security conditions can be maintained Set-up a system that has checks and balances

26. Storing Fresh Produce • Arrange for delivery frequency that will maximize quality. • Variability in cooler temperatures • Defrost cycles • Distance from the door • Air curtains • Heavy items on height appropriate shelves • Rotation of products – FIFO / Day dots / Markings

27. TRIVIA • Net Weight – Weight of product in the package • Gross Weight – Weight of product and the package • Tare – Weight of the packaging. • Julian Dates – Date expressed as year to date day number. • For example, October 14, 2004 is 04287. Year, # of days 04287