Purchasing FREEEEEEEEEEEEEEEEEEE

As Purchased (AP)

The weight of a product before it is processed, prepared, or cooked.

Vendor's handbook

A handbook developed by an establishment to inform vendors about the organization's purchasing policies and procedures.

Minimum-maximum inventory

An inventory system that requires the buyer to determine the minimum and maximum quantity that inventory levels must fall between.

Petty cash fund

A small amount of cash on hand that is used to make relatively low-cost product purchases.

Purchase requisition

A document used to inform the purchasing staff that more products need to be ordered.

Acceptance (contract)

An agreement to the exact details of and offer.

Account

An organization to which a vendor sells products.

A item

The more expensive items that an establishment purchases.

Audit trail

A step-by-step record that traces financial data to their source.

Backorder

A situation that occurs when a vendor does not have the products required to fill a purchaser's order.

Bar code

A label that has numerous machine-readable rectangular bars and spaces arranged in a specific way to identify a product.

Benchmarking

The search for the best practices and an understanding of how they are achieved, used to determine how well an organization is doing and how it can improve.

Bid

A price quotation from a vendor.

Boilerplate (contact language)

Contract clauses that do not change even though the contacts are developed for use with different vendors selling different products.

Bona Fide Occupational Qualification (BFOQ)

A job qualification legally judged reasonably necessary to safely or adequately perform a job.

Board-line vendor

A vendor that offers a wide variety of products.

Buyer's club

A retail organization in which, after payment of a member fee, persons can purchase food and other products in large-volume package sizes.

Cash on delivery (COD)

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A requirement that a buyer pay the full amount owed in cash or other acceptable payment form at the time products are delivered.

Centralized purchasing system

A system in which most or all purchases are made by a purchasing director for the entire organization

Cherry picker

A buyer who requests bids from several vendors and then buys only those items each vendor has on sale or for the lowest price.

Close-out

a strategy used by vendors or manufacturers to quickly sell unwanted inventory by reducing prices.

Code of purchasing ethics

Guidelines that should be followed as purchasers implement purchasing procedures and make purchasing decisions.

Competitive advantage

A benefit an operation has that allows it to generate greater revenues or retain more customers than its competition

Competitive bidding

A strategy for comparing vendors' prices for products of acceptable quality to determine the lowest price.

Consideration (contract)

The payment to be made in exchange for the promise(s) contained in the contract.

Contract

A legally enforceable agreement or promise.

Convenience food

A food item in which some or all of the labor is required to prepare the item is "built in"

Cost per servable pound

The cost of one pound of product that can be served to customers.

Counteroffer

An offer made in response to another offer that was not acceptable.

Credit memo

A document used to adjust information about a product quantities or cost recorded on a delivery invoice.

Decentralized purchasing system

A system in which all or most purchases are made by department heads or a designated employee in the department.

Delivery invoice

A document signed by a representative of the operation to transfer product ownership to the property.

Demand

The total amount of a product or service that buyers want to purchase at a specific price.

Differential pricing

Charging different customers different prices for the same product such as, for example, giving a discount for purchasing larger quantities.

Discount

A deduction from the normal price that is paid for something.

Distribution channel

AFall-back position (negotiation)n organization or individual involved in the process of making a product or service available to an organization.

Distributor Sales Representative (DSR)

The purchaser's most immediate contact with the vendor, also referred to as a salesperson or account executive

E-commerce

Activities related to buying and selling products and services through online sources

Edible portion (EP)

The weight of a product after it is processed, prepared, and cooked

Edible yield

The amount of a product that can be consumed

Enforceable (contract)

A contract that is recognized as valid by the courts and is, therefore, subject to the court's ability to require compliance with its terms.

Ethical

Behavior that society in general or culture of the establishment or the industry considers "the right thing to do”

Expedite

To perform activities that hasten the delivery of products that have been ordered but not yet received.

Express contract

A contract in which the components of the agreement are clearly understood and are stated orally or in writing.

Extension (calculations)

An arithmetic calculation made on a delivery invoice; for example, the item quantity and the unit price are multiplied to determine the total cost for each product.

Fall-back position (negotiation)

An alternative position that is not the buyer's first choice in negotiations, but one that is acceptable.

Family-service (establishment)

An establishment that features a wide variety of lower-priced meals where convenience food products are frequently used.

Franchisee

A party in a franchising agreement that uses the logo, name, systems, and resources of a business for a fee.

Franchisor

A company that owns and manages a brand and sells the rights to use its name, trademarks, and operating systems.

Free market

a situation in which the prices paid for products and services are determined by the vendor and the buyer who voluntarily enter into a contract.

Going-in position (negotiation)

A position that prioritizes the desired outcomes from a negotiation session.

Grading (quality)

A voluntary assessment of food items against predetermined quality standards.

Green Purchasing

Purchasing procedures that place a priority on a product's environmental impact.

Hazard Analysis Critical Control Point (HACCP)

A system used to control risks and hazards throughout the food supply process.

high check average (establishment)

An establishment that offers higher-priced meals because of the higher costs of products, service, and other features of the dining experience.

Individually Quick Frozen (IQF)

A process that involves blast-freezing food in individual pieces before packaging; mostly used with fish or fruit.

Inspection

A process that ensures that meat and poultry products are fit for human consumption.

Issuing

transferring products from storage areas to user departments so user staff can meet production needs.

Job discription

A description of the tasks that a person working in a specific position must perform.

Job specification

A document that lists specific knowledge and skills required to perform a job.

Just-in-time (JIT) purchasing

A system in which a purchaser has a long-term commitment with a vendor to make frequent product deliveries.

Kickback

Money or other gifts that are received by an employee in return for purchasing from a specific vendor.

Legal

Permitted by law.

Make-or-Buy Analysis

A study that suggests whether a product should be prepared "from scratch" on-site, or purchased as a partially or fully processed item.

Market form

Alternative ways that food products can be purchased.

Menu item popularity index

The percentage of customers likely to order specific menu items.

Moral

A standard that is based on principles about what is right and wrong.

National account

An organization with very large-volume purchase requirements that are spread across the manufacturer's sales regions.

Negotiation

A process by which parties with mutual interests try to reach an agreement about something.

Net price

The total or per-unit amount paid for something after all discounts have been applied to the original purchase price.

Offer (contract)

A proposal to perform an act or to pay an amount that, if accepted, becomes a legally valid contract.

Ordering

A process that occurs when a purchaser makes a commitment to a vendor relating to a specific purchase.

Order Point

The number of purchase units that should be available in inventory when an order is placed.

Pallet

A portable platform, or rack, typically made of wooden slats, used to store and move cases of products stacked on it.

Par level inventory

A system in which a specified quantity of products should always be in inventory.

payment card discount

A reduction in processing fees that credit and debit card issuers charge to those accepting payment cards.

petty cash system

A cash fund used to make infrequent and low-cost product purchases.

point-of-sale (POS) system

An electronic system that collects information about revenue, customer counts, item sales, and other operating data.

Portion-control (packets)

Individual servings of an item

Product loss

The amount by weight or percentage of a product's AP weight that is not servable.

Purchase Order (PO)

A document used to inform vendors that their prices for products of the specified quality and quantity in the RFP have been accepted and that the shipment should be delivered.

Purchase unit (PU)

The weight, volume, or container size in which a food product is normally purchased.

Purchasing

The entire process of selecting, buying, and evaluating the products and services needed by the restaurant or foodservice operation.

Qualified buyer

A person with the authority to make purchase decisions for his or her organization.

Quality

Suitability for intended use.

Quality Assurance

All activities that an organization uses to attain quality.

Quality standards

the factors that are used to compare an actual product or service with the desired product or service.

Rebate

A deduction offered after a purchase has been made at the normal selling price; also referred to as a "cash back" offer.

Receiving

A series of activities that ends with the transfer of product ownership from a vendor to a restaurant or foodservice operation.

Reciprocity

A situation that occurs when a purchaser agrees to buy something from a vendor in return for some kind of business from the vendor.

Request for Proposal (RFP)

A document used to request prices from approved vendors for products of a specified quality and in a specified quantity.

Reveune

The amount of money received from the sale of food and beverage products.

Terms and conditions (contract)

General provisions that apply to a vendor's responses to RFPs and a purchaser's purchase orders regardless of the specific products being sold or purchased.

Total quality management

The pursuit of organization-wide quality, with emphasis placed on improving processes and procedures rather than identifying defects.

Trade-out

An agreement between two businesses in which the contract's consideration is not in the form of money.

Trade show

An industry-specific event that allows vendors to interact with, educate, and sell to individuals and businesses in the industry.

Value

The relationship between the price paid and the quality of the products, services, and information received.

Value perception

The customer's opinion of a product's value to him or her.

Vendor manage inventory

A system in which the vendor determines the quantities needed for purchase and retains ownership of products until they are issued to production.

vendor relations

The ways in which purchasers interact with their vendors.