PURCHASING IN THE HOSPITALITY INDUSTRY

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THE NATURE OF THE WORK

The hospitality industry serves a wide range of activities involving travel, entertainment, business, and recreation. Consequently, your place of business could be a hotel, restaurant, resort, conference center, motel, country club, or any other operation that caters to the public by offering food and lodging. You could work on site or in the corporate headquarters, since many in the hospitality industry are part of a chain or franchise operation. Generally, the product classifications are food and beverage, janitorial and office supplies, furniture and equipment, recreational equipment, vehicles, landscape equipment, and supplies and services. Since many of the products are consumables, the volume and the delivery activity is extremely high.

Food Buyers



Perhaps the most complex field, the one requiring the most product knowledge, is the position of food buyer. The availability of the basic products, meats, poultry, fruits, vegetables, grains, spices, and seafood, depends upon the whims of nature, a force that cannot be controlled. Therefore, the food buyer must be in constant contact with the markets to determine not only pricing and quality but also availability. When weather conditions sharply diminish supply, they also significantly affect the quality of the items that are available. Consequently, the buyer must always be in a position to substitute items and to coordinate the substitution with all the users.

Almost every food product is available in various grades of quality. Beef, for example, is available in several grades that relate to tenderness and the method of cooking. There are also several yield grades that relate to cost. Knowing what quality grade and what yield grade to buy requires a thorough knowledge of beef and the many ways that it can be used. The same approach must also be used with pork, veal, poultry, seafood, and most fruits and vegetables, regardless of whether the item is purchased fresh, canned, or frozen.

This in-depth knowledge of food products can be gained only through extensive hands-on experience, a fact that favors the person who wishes to enter the purchasing field but does not have a degree. However, the lack of a degree may hamper him or her at the upper management levels. To make the jump from senior buyer to purchasing manager or director of purchasing may mean that the person will have to return to school to obtain some type of post-secondary education.

Purchasing foods in the private sector is usually based on an open market buying system receiving quotations on prices from several vendors that have been selected because of their past history of quality and service. After receiving the quotations, often the purchasing agent will require that product samples be submitted for testing, particularly if the item is canned or pack aged. In better hotels, resorts, and restaurants, the price is secondary to the quality because, obviously, the quality determines the overall image and reputation of the establishment.

Beverage Purchasing

Beverage purchasing, which includes wines and liquors, also requires extensive product knowledge. Again, the reputation of the establishment depends upon the ability of the buyer to select the best wines and liquors in every price range for a variety of uses. Often the selection of wines is based on the requirements of the wine steward, who is usually responsible for maintaining the wine cellar.

Buying Consumable Products

Most other consumable products, such as office and housekeeping supplies, recreational equipment, and landscaping products, are also purchased on the open market. Specifications for these products and supplies are developed in cooperation with the appropriate departments. Products in this category are not perishable and, therefore, are usually purchased in volume, stored, and then distributed as needed, a function normally under the direction of the purchasing department.

Buying Major Equipment and Furniture

In most chain or franchise operations, the purchase of major equipment and furniture, particularly in lobbies, lounges, and other common areas, is coordinated through purchasing or interior design departments at the regional or national corporate headquarters. Since most chains and franchises wish to maintain a certain theme or image, the furnishings, the colors, and the textures must be consistent from one location to another, thus requiring control by a corporate-level department. Even if the local buyer actually orders the items, the specifications are usually developed by corporate, or the items are purchased through a contract negotiated at the corporate level.

In many cases, the purchasing policies and procedures used by the local buyers are established by the corporate purchasing department, which may also negotiate nationwide contracts for some types of food, beverage, and supply products that are available through local distribution facilities. These contracts might involve national brand condiments, detergents, beverages, processed canned and frozen foods, or minor equipment.

Although corporate-level purchasing departments also require extensive product knowledge, they are more likely to require more formal education in business, interior design, engineering, or purchasing. Because they negotiate larger and longer-term contracts and because they must coordinate purchasing for many locations, there is a greater need for understanding overall corporate goals.

ENTRY REQUIREMENTS AND QUALIFICATIONS

Entry-level positions are varied. Since product knowledge is generally the essential requirement, many workers in hospitality purchasing started in apprentice-like positions in food and beverage service, housekeeping, or general clerical. Although, increasingly, a college degree is required, particularly at corporate levels, there are still many opportunities for high school graduates or two-year College graduates to enter the field, particularly if they have taken courses relating to the industry.

If you are considering a career in purchasing in the hospitality industry, then you must be aware of the demands placed on workers in this field. The hospitality field is driven by deadlines-orders must be in by a certain time and deliveries must be scheduled to coincide with guest arrivals, banquets, weddings, conferences, and other special events. Restaurants cannot accurately forecast volume or what the guests will order, so inventory levels must be adequate and flexible. Deliveries for events are often scheduled for the day of the event, so the time of delivery is critical. It is not unusual for a large resort to have three or four restaurants, several lounges, and, five to ten banquet rooms capable of serving up to twelve hundred people. The demands will differ every day, and each will bring different challenges and problems.

Consequently, if you are someone who must have an orderly and highly structured working environment, then this industry is not for you. This industry is for people who love high levels of activity, a variety of daily challenges, and interaction with many people. It is fast paced, hectic, exciting, and, for those who can cope with the pace, highly satisfying. No matter how organized you are, because the numbers and demand vary daily, your activities in the hospitality business can never be completely planned.

A sense of humor is vital. Daily you will be involved in tense situations where a sense of humor is a good method of relieving tension. The ability to work as a member of a team is also critical, because the need to coordinate many activities on a day, and even hourly, basis is constant. You must be able to accept problem solving as a way of life and be even tempered. You must be highly adaptive and creative and be able to accept changes without reacting negatively.

A sense of fairness and the ability to establish long-term vendor relationships is important. It is not at all unusual for the hospitality buyer to ask vendors to make emergency deliveries because of last minute changes in banquet menus or other problems. However, vendors need to feel that they are not being taken advantage of.

A buyer in this industry has to be reasonably extroverted and assertive. Because of the high levels of activity, the buyer must have an air of authority and must control the pace. He or she must have the ability to interrelate with a wide range of personality types, including chefs and interior designers, corporate executives, and delivery people.

The ideal combination of education and experience for someone wishing to enter hospitality purchasing is in the product information area. Since product information can only be obtained through hands-on experience, the "coming-up-through-the-ranks" approach as a source of purchasing personnel is the most common.

In larger chains, a trend toward hiring people with an associate's or bachelor's degree in food service or hotel/motel administration is noticeable. However, those hired in this category usually enter extensive training or intern programs designed to provide the necessary product knowledge.

Those entering the field in the hands-on entry-level positions are well advised to take college-level courses in purchasing, management, and business administration in order to improve their potential for promotion. At some point in your career, you may have the opportunity to apply or qualify for a supervisory position. At that point, a more thorough knowledge of the principles of purchasing and management systems will help obtain that promotion.
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