Accommodation Management

1. PRINCIPLES OF PURCHASING
RIGHT QUALITY
• Value for money
• Standard specifications
• Guest expectation

2. PRINCIPLES OF PURCHASING
Right Quantity
 Cost of order
 Cost of storage
 Quantity discounts
 Stock levels
 Budgetary control

3. PRINCIPLES OF PURCHASING
Right Price
Price ex-showroom
Freight
Taxes
Packaging etc

4. PRINCIPLES OF PURCHASING
Right Time
 Lead time
 Internal processing
 Receipt
 Inspection

5. PRINCIPLES OF PURCHASING
Right Source
 Supplier’s directory
 Trade associations
 Knowledge and experience
 Sales persons

6. Stages in Purchasing
Pre-order Stage
 Receipt of purchase indent
 Floating enquiries
 Procurement of amples
 Quotation
 Ordering

7. Stages in Purchasing
Post-order Stage
 Issue of purchase order
 Confirmation of receipt of P O
 Follow-up
 Dispatch advice
 Goods receipt note
 Payment

8. –STORAGE
–REQUISITIONING

9. METHODS OF BUYING
Factors affecting selection of method:
1. Type & quantity of products required
2. Capital available
3. Storage space available
4. Shelf-life of the product
5. Policy
6. Whether standardisation is needed
7. Whether no. of suppliers to be restricted
8. Method and frequency of issuing stores

10. METHOD OF BUYING
Competitive Bid Buying or Formal Buying
• Quotations invited
• Clear specifications
• Lowest bid accepted

11. METHODS OF BUYING
Wholesale Buying
 Contract with wholeseller
 Special price, period, quantities and
delivery dates
 Range of goods may be limited
 Heavy containers
 Half loads/cases not available

12. METHODS OF BUYING
Systems Contract
 Long term agreement
 For re-ordering low value items
 Specialist supplier carefully selected

13. METHOD OF BUYING
Blanket Order Purchasing
 Long term agreement between buyer and
vendor
 Multiple deliveries – specified quantity,
listed items
 Advantage of pre-determined pricing

14. METHOD OF BUYING
Stockless Purchasing
 Ordered items held in supplier’s
warehouse
 Items released as per buyer’s requirement

15. METHOD OF BUYING
Centralised Purchasing
 All units of company purchase through a
common purchasing unit
 Best deals available. E.g High volume
discounts etc

16. METHOD OF BUYING
Cash and Carry
 Goods purchased on cash payment
 Supplier does not deliver

17. METHODS OF BUYING
Negotiated Buying
 Direct agreement with supplier
 No competitive bidding
Purchase by Paid Reserve
 Paid in advance

18. STOCK RECORDS
• Goods received book/note
• Bin cards
• Monthly consumption sheet
• Purchase requisition
• Purchase order
• Stores requisition