Be able to apply control and

accounting methods for

resources in hospitality
LO 3
Part 1 Controlling
 Ordering methods and systems
• E- procurement
• Blanket ordering
• Suppliers Forms
• Standing Order
• Computerised System
• C.O.D
• Telephone
• Stockless Purchasing
Specification
 Minimum stock levels
• Safety stock
• Reorder point (ROP)
• Product usage pattern
• Just-in-time (JIT) inventory management
• Stock-out costs

• More info: Purchasing: Selection and

Procurement for the Hospitality Industry;
Moodle
 When to order?
• Par Stock Approach – the maximum
amount of a product you want to have on-
hand; order just enough to bring the stock
to par
• Levinson Approach – takes into account
forecasted sales, portion sizes and yield
percentages planning an order
• Theoretical Approach – takes into
account storage costs, carrying costs and
ordering costs when planning purchases
 Efficient use resources
• Take into consideration
– Storage costs
– Carrying costs
• Insurance
• Security
• Spoilage
– Ordering costs
– Opportunity costs
 Issuing goods/resources
• When a food or beverage product is
requested from storage by an employee
for use in an operation.
 Issuing goods/resources
• Food, beverages, and supplies should be
requisitioned only as needed based on
approved production schedules.
• Required items (issues) should be issued only
with management approval.
• If a written record of issues is to be kept, each
person removing food, beverages, or supplies
from the storage area must sign,
acknowledging receipt of the products.
• Products that do not ultimately get used
should be returned to the storage area, and
their return recorded.
Safety and security of storage
• Kickbacks (e.g. half an order is delivered in the
morning, with the other half promised in the
afternoon—the afternoon that never comes)
• Invoice scams
• Supplier and receiver error
• Inventory theft
• Inventory padding- there are 3 tins of beans in
the stock but only 1 on the inventory
• Inventory substitutions
• Telephone /email sales scams
 Watch employee who:
• Seem unduly friendly with salespeople
• Hang around storage areas
• Needlessly handle keys or locks
• Make too many trips to garbage areas, bathrooms, locker
room, or parking
• Requisition abnormally large amounts of supplies
• Make frequent trips to the storage areas for no real reason
• Have relatives working for the suppliers
• Frequently stray from assigned workstations
• Are seen stuffing boxes or packages under a couch
• Are seen passing packages to guests
• Permit drivers to loiter in unauthorized areas
• Have visitors on the work site
Preventing Security Problems
• Select honest suppliers
– Ask other operators about suppliers’ honesty
• Employee honest employees
– Prosecute dishonest employees
– Background/reference checks, integrity tests
• Design physical facilities to help ensure
security
• Document cash paid-outs
• No post office box payments
• Cancel paperwork on all completed
transactions
• Independent audit
Preventing Security Problems
• Secret shoppers – Uniformed guards
• Trash compactor – See-through screens on
storage facilities
• Enter/Leave through
– alarm systems
one door
• Separate purchasing
• Parking/ Locker rooms
activities
• Do not rush receivers
• Compare prices
• Physical barriers
• Approved supplier lists
– Time and heavy-duty
locks • Restrict access to
– Good lighting in storage certain items
areas
– CCTV
 Computerised /manual
control systems
• Manual
• Electronic
• https://www.xero.com/uk/why-xero/your-
business/food-beverage-accounting/
 Performance indicators
• Sales mix
• Average spend
• Occupancy rates/levels
Sales mix
 Documentation
• Purchase order
• Delivery note
• Invoice
• Goods received note
• Credit note
• Goods returned note
 Purchase order
• It is a document requesting the goods from chosen
supplier
• Some suppliers provide pre-printed paper or web-based order
forms. (e-commerce also)
• Create your own -MW templates
 Purchase Order Information
1. Item name
2. Spec #, if appropriate
3. Quantity ordered
4. Quoted price
5. Total price of order
6. Supplier information
7. Purchase order number
8. Date ordered
9. Delivery date
10. Name of person who placed order
11. Name of person who received order
12. Delivery instructions
13. Comments
• You are currently using 750 cases of green
beans per year.
• The cost of one purchase order is £75.
• Annual storage costs are approximately 25%
of inventory value.
• The beans’ wholesale price is £24 per case.
• Each case contains six No. 10 cans.
• How many cases should you purchase at one
time?
 Delivery note
• It is a document issued by the supplier and
sent with the goods, giving a description of
the goods included in the parcel.
• The name and contact details of the seller
• Name and contact details of the customer
• Date of issue
• Date of delivery of the goods
• A description of the goods contained in the
order
• The quantity of each type of goods
• Optional: signature and stamp of the
customer confirming the delivery was received
 Invoice
• It is a document which
the supplier sends to
the purchaser to
request payment for
goods delivered.
• Now make your own
 Goods received note
• It is a
document
raised by
the
purchaser
to contain
details of
the goods
received.
 Credit note
• It is a document
issued by a
supplier to a
buyer, to reduce
the amount
charged for
goods which
were damaged,
unsuitable, or for
which a reduction
in price has been
agreed for some
other reason.
 Goods returned note
• When goods are to
be returned to a
supplier for any reason,
this form is to be
completed.
How to efficient use resources in order to
achieve work objectives and minimise
waste?
 Organisational and legal
requirements
• https://www.food.gov.uk/sites/default/files/
multimedia/pdfs/tempcontrolguiduk.pdf
• Food Safety
• Food labelling
• COSHH
• Allergen Control
• Data Protection Act
Food Hygiene (England) Regs
2006
High-risk foods must be kept below 8°C or above 63°C

COOL HOT
Below 8°C Above 63°C.

Food must not be kept at temperatures that might result in a risk to health.