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

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

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. What Affects Your Purchasing Activities?

Name the five major objectives of the purchasing function Maintain an Adequate Supply. Maintain an Adequate Supply. Minimize Investment. Minimize Investment. Maintain Quality. Maintain Quality. Obtain the Lowest Possible EP Cost. Obtain the Lowest Possible EP Cost. Maintain the Company’s Competitive Position. 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 Purchasing Objectives

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Security Problems Security Problems 1. Kickbacks 2. Invoice Scams 3. Supplier and Receiving Error 4. Inventory Theft 5. Inventory Padding 6. Inventory Substitutions 7. Segregating Operating Activities Security In Inventory Function

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

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

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