1. © 2011 John Wiley and Sons, Inc. All Rights Reserved Selection and Procurement for the Hospitality Industry Purchasing ANDREW HALE FEINSTEIN AND JOHN M. STEFANELLI E i g h t h E d i t i o n

2. © 2011 John Wiley and Sons, Inc. All Rights Reserved CHAPTER Typical Receiving Procedures 14

3. © 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO: Describe the essentials of effective receiving. Generate an invoice and describe its use. Sequence typical invoice receiving procedures. Provide examples of other receiving methods. Summarize good receiving practices. Recall methods that reduce receiving costs.

4. © 2011 John Wiley and Sons, Inc. All Rights Reserved WHAT IS RECEIVING? Receiving is the act of inspecting and either accepting or rejecting deliveries.

5. © 2011 John Wiley and Sons, Inc. All Rights Reserved THE OBJECTIVES OF RECEIVING Obtaining the correct amount and correct quality at the correct time with the correct supplier services for the correct EP cost. Check to see that the delivered order meets these criteria. Control the received products and services.

6. © 2011 John Wiley and Sons, Inc. All Rights Reserved ESSENTIALS FOR GOOD RECEIVING Competent and trained personnel Proper receiving equipment Accurate scales for confirming weights (bare minimum) Temperature probes for refrigerated or frozen foods Rulers for checking trim of fat on steaks for example Calculator for verifying cost Knife for sampling Conveyor belts, hand trucks and/or motorized lifts for moving purchases Bar code reader

7. © 2011 John Wiley and Sons, Inc. All Rights Reserved ESSENTIALS FOR GOOD RECEIVING (CONT.) Proper receiving facilities Well lit Large enough to work in Reasonably secure Convenient for drivers and receivers Appropriate receiving hours Copies of all specifications Copies of all purchase orders

8. © 2011 John Wiley and Sons, Inc. All Rights Reserved INVOICE RECEIVING Most popular technique An invoice, or bill, accompanies the delivery

9. © 2011 John Wiley and Sons, Inc. All Rights Reserved TYPICAL INVOICE RECEIVING SEQUENCE (CONT.) Acceptance of delivery Receiving person checks quantity If no invoice, receiving person creates one Another party (chef, department head) may check for quality Creates time lag Product may be destroyed by waiting Buyer notified if necessary, who notifies supplier Price, price extension, taxes checked Sent to storage

10. © 2011 John Wiley and Sons, Inc. All Rights Reserved TYPICAL INVOICE RECEIVING SEQUENCE (CONT.) Rejection of delivery All or part Request for Credit memorandum (or credit slip) Problems with rejecting Returning merchandise Acceptance of delivery

11. © 2011 John Wiley and Sons, Inc. All Rights Reserved ADDITIONAL RECEIVING DUTIES Date the delivered items Price all delivered items Create bar codes Apply “meat tags” Housekeeping Update AP prices Backhaul recyclables

12. © 2011 John Wiley and Sons, Inc. All Rights Reserved OTHER RECEIVING METHODS Standing order receiving Blind receiving Odd-hours receiving Drop-shipment receiving Mailed deliveries COD deliveries

13. © 2011 John Wiley and Sons, Inc. All Rights Reserved GOOD RECEIVING PRACTICES Beware of excess ice, watered-down products or anything else that could add weight to a product Check the quality of items under the top layer Inspect packages for leakage or water damage; swollen cans should be rejected Ensure that expiration date has not come and gone

14. © 2011 John Wiley and Sons, Inc. All Rights Reserved GOOD RECEIVING PRACTICES (CONT.) Weigh each type of item separately Be wary of drivers eager to help unload Do not sign for incomplete orders Spot-check portions for proportion weights

15. © 2011 John Wiley and Sons, Inc. All Rights Reserved GOOD RECEIVING PRACTICES (CONT.) Be careful of closed shipping containers with pre-printed expiration dates, weights, counts, etc. Do not accept re-frozen merchandise Be careful to not confuse brand names or packers’ brands Test for acceptable shrinkage Refer to provided specifications

16. © 2011 John Wiley and Sons, Inc. All Rights Reserved REDUCING RECEIVING COSTS Field inspectors Computerized receiving Night and early-morning deliveries One-stop shopping