purchasing: outline l the players »the market »the government –agencies –laws »the buyer l...
TRANSCRIPT
![Page 1: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/1.jpg)
Purchasing:Outline
The Players» The market» The government
– agencies– laws
» The buyer The Process» Types of purchasing» Methods of purchasing
The Procedure» Steps to take» Records to keep
The Product» Specifications» Determining yield» Make vs. Buy decisions
![Page 2: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/2.jpg)
is getting the right ____________
to the right __________
at the right __________
in the right __________
at the best __________
Purchasing
![Page 3: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/3.jpg)
Purchasing: The Players
The market = ______________ (of ownership)» ______ = basic source of supply» ________ = middlemen» _______
Marketing involves the product plus labor, packaging, transportation, advertising; overhead…
Every change of ownership increases _________!
![Page 4: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/4.jpg)
Marketing Share
![Page 5: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/5.jpg)
The Food Dollar
Ret
ail t
rad
e; o
ther
ener
gy
Fin
ance
; in
sura
nce
pac
kag
ing
tran
spo
rtat
ion
pro
cess
ing
farm
val
ue
18¢3.5¢
4.5¢
4¢7¢ 19¢
34¢ 16¢
Fo
od
-se
rvic
e
In the U.S. each $1 spent on food in 2008 went to:
Source: USDA, ERS, Food Dollar Series Accessed 9/13/11 from http://www.ers.usda.gov/Data/FoodDollar/documentation.htm
![Page 6: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/6.jpg)
The Food Dollar
oth
er
fuel
s; e
lect
rici
ty
pre
-tax
pro
fit
adve
rtis
ing
tran
spo
rtat
ion
pac
kag
ing
farm
val
ue
22¢ 4¢4.5¢
??
4¢ 8¢ 39¢ 18¢
lab
or
In the U.S. each $1 spent on food in 2006 went to:
Source: USDA, ERS, Price Spreads from Farm to Consumer: Components of the Marketing Bill. Accessed 9/6/09 from http://www.ers.usda.gov/Data/FarmToConsumer/Data/componentstable.htm
![Page 7: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/7.jpg)
The Food Dollar
oth
er
fuel
s; e
lect
rici
ty
pre
-tax
pro
fit
adve
rtis
ing
tran
spo
rtat
ion
pac
kag
ing
farm
val
ue
15¢3.5¢
4¢4¢4¢ 8.5¢ 38¢ 23¢
lab
or
In the U.S. each $1 spent on food in 1996 went to:
![Page 8: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/8.jpg)
Purchasing:The Players
Value-added factors
Also, supply and demand, competition, government policy, economic trends, weather conditions can affect price
![Page 9: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/9.jpg)
Government agencies» _____: meat, poultry, eggs, fish» _____: everything else– standards of identity– standards of quality– standards of fill– sanitation/food safety– labeling
» National Marine and Fisheries Service
» Public Health Service» EPA: pesticides, water safety» U.S. Treasury: alcohol
Purchasing:The Players
![Page 10: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/10.jpg)
Laws» Law of agency: buyer’s
authority to act for an organization; liability
» Law of warranty: supplier’s guarantee of performance of goods
» Law of contract: agreement of terms between two or more parties
» Law of Title to Goods: when does the shipment change ownership? (FOB: Free-on-board vs. CIF: cash, insurance, freight)
Purchasing:The Players
![Page 11: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/11.jpg)
The Buyer» Brokers vs. agents
» Ethics?
» Policies should be established beforehand
Purchasing:The Players
![Page 12: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/12.jpg)
Types of purchasing• Single-unit purchasing
• Warehouse clubs
• Centralized purchasing
• Group/cooperative purchasing
Purchasing:The Process
![Page 13: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/13.jpg)
Informal/Open-marketvs. Formal Bid– If U.S. gov’t related business,
must solicit bids from all qualified vendors
Purchasing arrangements» Cost-plus purchasing» Prime vending» Blanket purchase agreement» Just-in-Time purchasing
Purchasing: Methods of purchasing
![Page 14: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/14.jpg)
Purchasing:The Procedure
1. Identify needs ________ system ________ system
2. Determine product ____________
name, grade, unit purchased, container sizes, count per container, form…
3. Determine __________ needed depends on forecast, portion size,
cash available, frequency of delivery, storage space…
4. Research market for availability5. Negotiate and place an order
consider price, quality, service6. Receive, pay, store…
![Page 15: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/15.jpg)
Purchasing:The Procedure
Purchasing records:1. purchase _________
requisition #, date needed, budget account #, quantity needed, item description
2. ___________ (PO)
3. ___________
![Page 16: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/16.jpg)
Purchasing:The Product
Form Quality» Grades = comparison to
government standards– scoring depends on type of
product– is higher (best) grade always
the best choice?
» Brands» Condition at delivery
_____(V) = Quality (Q)
Price (P)
![Page 17: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/17.jpg)
Purchasing:The Product
______ helps determine form and quantity to buy» AP =» EP =» AS =
EP portion ÷ yield % = AP portion
AP price ÷ yield % = EP price
![Page 18: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/18.jpg)
Purchasing:The Product
Make vs. Buy decision» quality» equipment (availability,
capacity, turnover time)» labor (availability, skill,
training needed)» time» inventory (storage space)» cost
_______should be the last decision criteria
![Page 19: Purchasing: Outline l The Players »The market »The government –agencies –laws »The buyer l The Process »Types of purchasing »Methods of purchasing l The](https://reader030.vdocuments.us/reader030/viewer/2022032802/56649e1a5503460f94b07036/html5/thumbnails/19.jpg)
A. List all the ways you can think of in which buying locally is a positive choice. (Think of the whole food system.)
B. Briefly trace the general steps in food procurement, from identifying a need to the final delivery of the product.
Practice Questions--Purchasing