Purchasing
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Here are the key points about product specification and pricing unit: Product specification refers to the technical details and requirements that a product must meet in order to be deemed acceptable for procurement. It includes qualities like dimensions, materials used, performance characteristics, packaging requirements, warranty terms, and other relevant attributes. Developing clear product specifications helps ensure the item purchased is suitable for its intended use. Pricing unit refers to the basic unit in which an item is priced and purchased. It could be per unit, per kilogram, per dozen, per liter, etc. Establishing the appropriate pricing unit is important for accurate budgeting and cost control. It allows for easy calculation of the total price based on the quantity required.
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Purchasing
- 1. Financial losses are often incurred when food establishment is unable to control or regulate its purchases resulting to overstocking. In a small establishment it might be advice to the owner to control purchasing transaction. It is not possible to manage cost where purchasing is concerned with out the set of product specification for its intended use terms of both quality and cost. And most of all controlling the purchase without sacrificing of the product.
- 2. IT IS PROCESS OF GETTING THE RIGHT PRODUCT INTO A FACILITY & TO BE CONSUME AT THE RIGHT TIME & IN A FORM THAT MEET PRE-ESTABLISHED STANDARD FOR QUANTITY, QUALITY & PRICE. IT ENCOMPASSES ALL & ANY ACTIVITY NECESSARY FOR CARRYING OUT LONG TERM AND SHORT TERM FUNCTION FOR ACQUIRING GOODS AND SRRVICE.
- 3. Right Quality Right Quantity Right Price Right Source/ Place Right Time Right Cost
- 4. This means acquiring the good or service at the desire specification Right Quantity- The quantity purchased must be enough for immediate consumption not unless there is a need to purchase extra stock when there is an unanticipated increase of price or food shortage.
- 5. The item must be purchased at the lowest possible price but one must sure that it meets required specifications.
- 6. Time deliveries is must buying food in season should also be considered since they are usually cheaper & of better quality than when they are out of season. Right cost-should always keep in mind any additional cost that may be incurred due to transport, shipping & delivery.
- 7. 1. Identification of a need to be filled by an outside source. 2. Development of specifications or detailed description of desired product. 3. Determination of quantity needed 4. Market research regarding product quality. 5. Negotiation w/ seller & order placement. 6. Receiving of item & transfer into proper storage. 7. Issuing of item.
- 8. Maintain an adequate supply Minimize investment Maintain quality Obtain the possible cost Maintain the companys competitive position
- 9. Purchases are done in compliance with prescribed procedures, using prescribed control forms; Orders are calculated on the basis of stock requirements; Order quantity are accurately estimated based on reliable forecast or average usage; Purchases are regulated within the limits of the budget; Purchases specifications of end users are followed; The best quality merchandised are procured at the lowest possible cost; Items are procured from suppliers who meet quality standards and offer the lowest possible price and most advantageous terms and Purchases are for immediate consumption.
- 10. Coordinate with end users regarding their stock requirements and specifications; Scout for suppliers who could give quality goods with the best price and terms; Screen suppliers; check/inspect their sources of stocks to make sure they are safe from consumption; Receive samples for testing and endorse them to end users for evaluation; Prepare and distribute purchase orders;
- 11. Canvass quotations and endorse results to purchasing manager for review and approval; Follow up undelivered orders; Scout for alternative stocks in case there are undelivered or unavailable stocks; Do open market buying when needed; Monitor price increases and inform the chef so that he can do the necessary adjustments in recipe and cost; Maintain and update price list and Coordinate with suppliers regarding late or no shoe deliveries, shortage of stocks and other problems.
- 12. 1. What is PRODUCT SPECIFICATION 2. What is PRICING UNIT?