Chapter 6 - Ordering process: How do i actually buy this stuff? This chapter’s objectives are to: Categorize products before ordering, determine the optimal order size for products, choose an ordering approach aligned with the organization’s needs, negotiate an ordering system with chosen purveyors, prepare purchase records. | Categorize Your Products Order Sizes Order Record Contacting Vendors Categorize products before ordering. Determine the optimal order size for products. Choose an ordering approach aligned with the organization’s needs. Negotiate an ordering system with chosen purveyors. Prepare purchase records. Sort into three categories Perishable products (short-life) Center-plate items (expensive ingredients) Everything else Oder Perishable and center-plate items as often as possible Daily? Perhaps Increased carrying cost if items sit around Order everything else as seldom as storage allows Use-based System of Ordering Physical inventory Forecast needs for the upcoming period Calculate expected product use Subtract what you have on hand Add a little safety stock Typical Example Precut sirloin steaks Anticipate serving 600 25 on hand Order 575 plus a few more Some safety stock built-in: can’t order a portion of a case for example For “Everything Else” Par-Stock Best System Determine how much you . | Categorize Your Products Order Sizes Order Record Contacting Vendors Categorize products before ordering. Determine the optimal order size for products. Choose an ordering approach aligned with the organization’s needs. Negotiate an ordering system with chosen purveyors. Prepare purchase records. Sort into three categories Perishable products (short-life) Center-plate items (expensive ingredients) Everything else Oder Perishable and center-plate items as often as possible Daily? Perhaps Increased carrying cost if items sit around Order everything else as seldom as storage allows Use-based System of Ordering Physical inventory Forecast needs for the upcoming period Calculate expected product use Subtract what you have on hand Add a little safety stock Typical Example Precut sirloin steaks Anticipate serving 600 25 on hand Order 575 plus a few more Some safety stock built-in: can’t order a portion of a case for example For “Everything Else” Par-Stock Best System Determine how much you will use in next three to six months Set a minimum amount of product needed on hand (re-order point) Subtract the minimum (the amount you have on hand) from the par stock for order size To Keep in Mind: Much can change in three to six months Make sure menu or operational changes haven’t eliminated need for a product Maybe there is a better deal from another vendor or a substitute is available Keep Records of What is Ordered When Order Arrives Is it the right brand? Is it the right size? Is it actually what you ordered at all? Online Ordering Always open for business Know what is available (or on back order) Staff members may be authorized to order limited amounts Search features allow for easy product comparisons Telephone Good for emergency orders Complaints Mistakes are more likely In Person Infrequent Introduce new products or specials Will-call Buying Usually for small stops Send in order by phone or fax and then pick it up, or show up and go shopping Can place orders with Costco, Sam’s Club, Smart & Final Standing Order Order is placed when the driver arrives Convenient Not available for all products Usually good for dairy, bread, breakfast pastries, soda pop syrup, etc. Farmers’ Market Water markets – foods come in from around the world Save money Best, freshest products Auctions Good for small wares and equipment Reverse auction – online, let it be known what you are seeking (make sure your specifications are accurate)
