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					                Food Purchasing
             for Child Care Centers


     Section 8:
   Most Efficient
 Place to Purchase

National Food Service Management Institute   Section 8: Place to Purchase   1
             Lesson Objectives

The learner will be able to
   state the factors to consider in
    deciding on the most efficient place
    to purchase food,
   explain the importance of
    purchasing the correct size,

National Food Service Management Institute   Section 8: Place to Purchase   2
             Lesson Objectives

The learner will be able to
   explain why it is not always
    appropriate to purchase a whole
    case of a product,
   state the options for finding vendors
    for milk, bread, and CN labeled
    products,
National Food Service Management Institute   Section 8: Place to Purchase   3
             Lesson Objectives

The learner will be able to
 explain the relationship between
  controlling inventory and controlling
  food costs, and
 state the differences between retail
  and wholesale vendors and explain
  when it is appropriate to purchase
  from each.
National Food Service Management Institute   Section 8: Place to Purchase   4
             To Determine . . .
              . . . the most efficient place to
              purchase, you need information
              from Steps 1–4:
                   Step 1—plan the menus
                   Step 2—develop the grocery list
                   Step 3—estimate quantities
                   Step 4—analyze the market
                    (vendor choices)

National Food Service Management Institute   Section 8: Place to Purchase   5
             Retail Vendors

    Specialty stores
    Local grocery stores
    Supermarkets
    Institutional jobbers
    Wholesale clubs

National Food Service Management Institute   Section 8: Place to Purchase   6
             Retail Vendors
If purchasing from
retail vendors, you
    can buy one of any
     item,
    may pay a higher
     price, and
    can buy the exact
     amount needed.
National Food Service Management Institute   Section 8: Place to Purchase   7
             Wholesale Vendors


    Wholesale grocery
     distributors

    Institutional
     distributors



National Food Service Management Institute   Section 8: Place to Purchase   8
             Wholesale Vendors


      Do not usually
       break cases

      May have lower
       prices



National Food Service Management Institute   Section 8: Place to Purchase   9
             Wholesale Vendors
Cautions!
    A center may not have
     enough storage space
     or inventory size.
    ―Wholesale‖ is not a
     trademark.
    Some vendors have
     ―wholesale‖ in their name
     but have retail prices.
National Food Service Management Institute   Section 8: Place to Purchase   10
             Your Decision Depends On . . .




           the quantity you need to buy and
           the vendors available in your
            area.
National Food Service Management Institute   Section 8: Place to Purchase   11
             When Deciding . . .

                      . . . where to buy,
                         consider how
                      inventory will be
                           controlled.


National Food Service Management Institute   Section 8: Place to Purchase   12
            Controlling Inventory Will. . .
        reduce food costs,
        reduce waste,
        reduce theft,
        reduce the need for cash to pay
         bills,
        reduce the need for storage, and
        reduce the risk of spoilage.
National Food Service Management Institute   Section 8: Place to Purchase   13
             Remember . . .

                . . . if the food is at the
                grocery store or at the
               distributor’s warehouse
                 when it spoils, it still
               belongs to the grocery
                  store or distributor.

National Food Service Management Institute   Section 8: Place to Purchase   14
             Inventory Goal

 Every center should
 have an inventory goal
 stated in
    dollars and
    number of days.

National Food Service Management Institute   Section 8: Place to Purchase   15
             Achievable Goal

                7 to 14 days if
         Storage limited

         Food delivered
          weekly or every other
          week

National Food Service Management Institute   Section 8: Place to Purchase   16
             Example

   Center: 50 children/caregivers
       7-working-day inventory
            Inventory investment: $3,000
       14-working-day inventory
            Inventory investment: $6,000

National Food Service Management Institute   Section 8: Place to Purchase   17
             Controlling Inventory


       Purchasing the
       correct size is a
      part of controlling
          inventory.


National Food Service Management Institute   Section 8: Place to Purchase   18
             Activity 5
                                      Salt Facts

          Oak Street Child Care Center uses
           about 5 Tbsp of salt per week.
          Salt is purchased in 1 lb boxes.
          1 oz of salt is equal to 1½ Tbsp.
          There are 24/1 lb boxes in a case.

National Food Service Management Institute         Section 8: Place to Purchase   19
             Activity 5: Answers

1. How long will a 1 lb box of salt last at
   Oak Street Child Care Center?
                                             4 weeks
2. If a 1 lb box of salt will last 4 weeks
   (about a month), how long will a case
   of salt last?
                          24 months or 2 years
National Food Service Management Institute             Section 8: Place to Purchase   20
             Activity 5: Answers

3. For Oak Street Child Care Center, is it
   good inventory control to purchase a
   case of salt? No
 4. List the retail vendors where a single
    box of salt could be purchased:
         Grocery store
         Supermarket
         Wholesale club
National Food Service Management Institute   Section 8: Place to Purchase   21
             Activity 6: Catsup
Center A
 Amount in case/pack = 12

 Quantity needed for 1 week = 1

 12 ÷ 1 = 12 weeks

    12 weeks = 3 months
         1 month = approx. 4 weeks
         12 ÷ 4 = 3
National Food Service Management Institute   Section 8: Place to Purchase   22
             Activity 6: Catsup
Center B
 Amount in case/pack = 12

 Quantity needed for 1 week = 2

 12 ÷ 2 = 6 weeks

    6 weeks = 1½ months
         1 month = approx. 4 weeks
         6 ÷ 4 = 1.5 or 1½
National Food Service Management Institute   Section 8: Place to Purchase   23
             Activity 6: Catsup
Center C
 Amount in case/pack = 12

 Quantity needed for 1 week = 3

 12 ÷ 3 = 4 weeks

    4 weeks = 1 month
         1 month = approx. 4 weeks
         4÷4=1
National Food Service Management Institute   Section 8: Place to Purchase   24
              Activity 6: Answers
                 Quantity Needed for         How Long Will It Take to
                      One Week         Case/         Use?
   Item
                Center Center Center Pack Center Center Center
                A (50) B (100) C (150)       A (50) B (100) C (150)
Catsup,                                               12/      3          1½               1
                    1             2           3
24 oz                                                24 oz   months      months          month
Chicken
                                                      24/     2+           1+              4
Stock,              10           20           30
                                                     14 oz   weeks        weeks           days
14 oz
                                                     12/       6           3              2
Flour, 5 lb       2½ lb          5 lb        7½ lb
                                                     5 lb    months      months         months

National Food Service Management Institute                     Section 8: Place to Purchase   25
              Activity 6: Answers
                 Quantity Needed for         How Long Will It Take to
                      One Week         Case/         Use?
   Item
                Center Center Center Pack Center Center Center
                A (50) B (100) C (150)       A (50) B (100) C (150)
Graham
                                                  12/     1½            3              2
Crackers,           2             4          6
                                                 14 oz   months       weeks          weeks
14 oz
                                                 24/       3          1½               1
Jam, 8 oz           2             4          6
                                                 8 oz    months      months          month
Lemon                                            12/       3          1½               1
                    1             2          3
Juice, 1 qt                                      1 qt    months      months          month

National Food Service Management Institute                 Section 8: Place to Purchase   26
              Activity 6: Answers
                  Quantity Needed for         How Long Will It Take to
                       One Week         Case/         Use?
   Item
                 Center Center Center Pack Center Center Center
                 A (50) B (100) C (150)       A (50) B (100) C (150)
Mayonnaise,                                           4/       1            2             1+
                     1             2           3
1 gal                                                1 gal   month        weeks          weeks
Margarine,                                           36/       3          1½               1
                     3             6           9
1 lb                                                 1 lb    months      months          month
Sugar,
                                                     12/       15         7½              5
granulated,         1 lb          2 lb        3 lb
                                                     5 lb    months      months         months
5 lb

 National Food Service Management Institute                    Section 8: Place to Purchase   27
              Activity 6: Answers
                 Quantity Needed for         How Long Will It Take to
                      One Week         Case/         Use?
   Item
                Center Center Center Pack Center Center Center
                A (50) B (100) C (150)       A (50) B (100) C (150)
Tomato                                           24/      3          1½               1
                    2             4          6
Paste, 6 oz                                      6 oz   months      months          month




National Food Service Management Institute                Section 8: Place to Purchase   28
             Activity 6: Answers
           Center A (50)                       Center B (100)            Center C (150)
 Catsup                                      Catsup                 Catsup
 Flour                                       Flour                  Flour
 Graham Crackers                             Graham Crackers
 Jam                                         Jam                    Jam
 Lemon Juice                                 Lemon Juice            Lemon Juice
 Mayonnaise
 Margarine                                   Margarine              Margarine
 Sugar, granulated                           Sugar, granulated      Sugar, granulated
 Tomato Paste                                Tomato Paste           Tomato Paste
National Food Service Management Institute                       Section 8: Place to Purchase   29
             Conclusion


         Not many items
           should be                              Not
          purchased by
            the case!                            Many!


National Food Service Management Institute   Section 8: Place to Purchase   30
             If Inventory . . .
             . . . is to be controlled at the
             7-to-14-day level, most items
             need to be purchased from a . . .


            Retail Vendor!


National Food Service Management Institute   Section 8: Place to Purchase   31
             Milk Vendor


          Specialty vendor
             or jobber if
           storage for one
           delivery a week


National Food Service Management Institute   Section 8: Place to Purchase   32
             Milk Vendor

    Few milk companies
     operate delivery
     routes.
    Most milk companies
     sell routes to
     independent jobbers.

National Food Service Management Institute   Section 8: Place to Purchase   33
             Milk Vendor

        Most institutional
         distributors sell milk.
        Purchasing milk
         might help meet the
         minimum delivery
         requirement.

National Food Service Management Institute   Section 8: Place to Purchase   34
             To Find a Milk Vendor

           Make a list of all the milk vendors
            that deliver to community
              grocery stores,

              schools, and

              restaurants.




National Food Service Management Institute   Section 8: Place to Purchase   35
             To Find a Milk Vendor

       Contact the milk company
        headquarters.
            Ask if they deliver or use a jobber.
            If a jobber is used, ask how to
             contact the jobber.
       Prepare a request for price quotes for
        milk.
National Food Service Management Institute   Section 8: Place to Purchase   36
             To Find a Milk Vendor

      Contact each company or jobber and
       discuss your business needs.
      Mail the request for price quotes.
      If you receive more than one response,
           follow your guidelines in the request
            for prices and
           award the contract.
National Food Service Management Institute   Section 8: Place to Purchase   37
             To Find a Milk Vendor

      If you receive only one response,
           compare the price offered to the
            price at the grocery store and
           provide all information related to
            milk to your State Agency and ask
            permission to award the contract.


National Food Service Management Institute   Section 8: Place to Purchase   38
             Milk Purchasing Resource

                      First Choice:
                      A Purchasing
                        Systems
                       Manual for
                      School Food
 http://www.nfsmi.org    Service
National Food Service Management Institute   Section 8: Place to Purchase   39
             Bread Vendor

      Bread purchases are not usually large
       enough for direct delivery from a
       bread company
      Institutional distributor
         Frozen bread

         Storage for a 1 week supply


      Retail vendor if storage not adequate
National Food Service Management Institute   Section 8: Place to Purchase   40
             Activity 7


                     Retail Vendor ?
                            or
                    Wholesale Vendor?


National Food Service Management Institute   Section 8: Place to Purchase   41
             Activity 7: Answers

1. How many of the items for Center A
   are best purchased from

      a. a retail vendor?                    28

      b. a wholesale vendor? 3
            (Watermelon, Baking Potatoes,
            Chicken Thighs)
National Food Service Management Institute        Section 8: Place to Purchase   42
             Activity 7: Answers
2. How many of the items for Center B
   are best purchased from
  a. a retail vendor? 25
  b. a wholesale vendor? 5
             (Watermelon, Baking Potatoes,
             Grape Juice, Ground Beef, Chicken
             Thighs)
       c. a wholesale vendor with a few extra
          from a retail vendor? 1
             (Strawberries)
National Food Service Management Institute   Section 8: Place to Purchase   43
             Activity 7: Answers
3. How many of the items for Center C
   are best purchased from
  a. a retail vendor? 18
  b. a wholesale vendor? 9
              (Watermelon, Carrots, Tomatoes, Baking
              Potatoes, Apricot Halves, Grape Juice, Peach
              Slices, Ground Beef, Chicken Thighs)
      c. a wholesale vendor with a few extra
         from a retail vendor? 4
             (Pears, Strawberries, Bananas, Oranges)
National Food Service Management Institute   Section 8: Place to Purchase   44
             CN Labeled Products

      Available only from institutional
       distributors
      Difficult for small center to meet
       institutional distributor minimum
       delivery requirements
      Possible to ask schools or restaurants
       to order
National Food Service Management Institute   Section 8: Place to Purchase   45
             Factors to Consider
                Vendors available in the
                 community
                Inventory goals
                Quantity of food
                Type of food
                Wholesale pack per case
                Shelf life
National Food Service Management Institute   Section 8: Place to Purchase   46
                     This training was conducted by the




    National Food Service Management Institute
                                The University of Mississippi
                                        www.nfsmi.org
                                         800-321-3054

National Food Service Management Institute              Section 8: Place to Purchase   47
               National Food Service Management Institute
               The University of Mississippi




               Mission: To provide information and services that
                promote the continuous improvement of child nutrition
                programs
               Vision: To be the leader in providing education,
                research, and resources to promote excellence in child
                nutrition programs

National Food Service Management Institute        Section 8: Place to Purchase   48

				
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Description: Retail Vendor Management document sample