Chapter 13 - Typical ordering procedures. After completing this chapter, students will be able to: Explain the objectives of storage, describe the factors needed to achieve storage objectives, illustrate the process of managing inventory and storage facilities, generate a stock requisition and describe its use, list important storage-management practices that small hospitality operators should follow. | Typical Ordering Procedures 13 YOU SHOULD BE ABLE TO: Explain the objectives of storage. Describe the factors needed to achieve storage objectives. Illustrate the process of managing inventory and storage facilities. Generate a stock requisition and describe its use. List important storage-management practices that small hospitality operators should follow. A BUYER’S CONCERNS Obtaining the Right amount At the right time With the right supplier services For the right EP Cost PURCHASE REQUISITION Document listing the products or services needed by someone in the hospitality operation; sent to buyer to find the best deals; typically used for items buyer doesn’t purchase on a regular basis. PURCHASE REQUISITION (CONT.) Disadvantages Too many people involved in deciding types and qualities of products and services Invites backdoor selling Requires time and effort to implement/maintain such a system PURCHASE REQUISITION (CONT.) Advantages Useful training device for department . | Typical Ordering Procedures 13 YOU SHOULD BE ABLE TO: Explain the objectives of storage. Describe the factors needed to achieve storage objectives. Illustrate the process of managing inventory and storage facilities. Generate a stock requisition and describe its use. List important storage-management practices that small hospitality operators should follow. A BUYER’S CONCERNS Obtaining the Right amount At the right time With the right supplier services For the right EP Cost PURCHASE REQUISITION Document listing the products or services needed by someone in the hospitality operation; sent to buyer to find the best deals; typically used for items buyer doesn’t purchase on a regular basis. PURCHASE REQUISITION (CONT.) Disadvantages Too many people involved in deciding types and qualities of products and services Invites backdoor selling Requires time and effort to implement/maintain such a system PURCHASE REQUISITION (CONT.) Advantages Useful training device for department heads who want to become full-time buyers Can relieve a buyer of responsibility for ordering mistakes Can relieve buyer of paperwork Helps provide control of product use in different departments ORDERING PROCEDURES Buyer determines amount to order Buyer prepares purchase order (PO) Buyer sends purchase order to suppliers Purchase order form varies, but basic information the same ORDERING PROCEDURES (CONT.) Placing the order Handing the sales representative the PO Calling in or faxing the order Sending the order by email Sending the order via the Web PURCHASE ORDERS Resembles a purchase requisition. However it is an external document used to procure goods and services. PURCHASE ORDERS (CONT.) Information usually includes Date Transportation requirement Packaging instructions Quantity Item type Unit size Unit price Extended price PURCHASE ORDERS (CONT.) Operations use different number of copies of the PO Supplier -- original Second supplier copy – to use as a bill Third supplier .
