procurement in a hotel by sankar narayanan - westin chennai velachery
TRANSCRIPT
PROCUREMENT IN A HOTELBy Sankar Narayanan - Westin Chennai Velachery
PROCUREMENT
Procurement department is the backbone of the hotel as around 40% of the cost of company lies in procurement cost
It is an important support function for day to day operations of the hotel
Responsible for efficient procurement of goods and services
Responsible for setting and adhering to all Procurement Policies and Procedures
OBJECTIVES
The basic objectives of procurement are:
Right PriceRight specificationsRight SupplierRight quantityCorrect stock levelsBest yieldsTimely payments to vendorsSustainable DevelopmentCSRSatisfied Internal Customers & Management
PROCUREMENT INTERFACE…
PROCUREMENTDEPARTMENT
PROCUREMENTDEPARTMENT
PROCUREMENT PROCESS…
.
Managing interface :
Define Specification
Select Supplier Contract Agreement
Ordering Expediting Evaluation
Get Specification Assure adequate supplier selection
Prepare contract Establish order routine
Establish Expediting routine
Assess supplier
-Function /Technical specification-Bring supplier knowledge to production
-Pre qualification of supplier- Supplier Audit-RFQ (Request for Quotation)
-Contracting Expertise-Negotiating Expertise- SLA’s
-Develop order routines-Order handling
-Expediting-Trouble shooting
-Supplier Evaluation-Supplier rating
-Functional Specification
-Supplier Selection proposal
Contract Order -Exception report- Invoices
-Preferred supplier list-Supplier ranking scheme
Role of Procurement
Elements
Documents
WHAT ELSE PROCUREMENT DOES… Purchase Manual
• To define various procurement activities, tasks and processes to complete these activities
Data Compilation
• Vendor Master Creation and update
• Item Master Creation and update
Market Information
• Trends, Seasonality, Crop schedules etc.
• Information of item rates and vendors from competitors, other hotels, catering units etc.
• Substitutes / alternates
WHAT ELSE…
Vendor Management
– Vendor Account opening process / Vendor Profile Data compilation
– Vendor Audit and Evaluation Process
– Vendor Appreciation Module
Develop Product Specifications
MIS submitted to the management on time
All India Contract database compilation
RECEIVING DEPARTMENT
All goods are received at the correct temperature – frozen chilled & dry
Goods are received in proper packaging – Plastic tubs, branded material in original packing, no torn packets or damaged tins & containers
All statutory markings have to be present on material, like – FPO, FSSAI, Agmark, etc.
All goods are verified and tallied against the purchase order
All goods are received as per the timings specified
Reports prepared and submitted as per standards
STORES DEPARTMENT
All goods are stored at their ambient temperature – Frozen, chilled & dry
Optimum par stocks to be maintained for all the Inventory items
Materials are strictly issued with an approved Requisition ONLY
Co-ordinate and update user departments on slow & non moving products
FIFO is strictly followed for all products
All standard procedures for storekeeping are strictly followed like – distance from floor and walls, heat, lighting, etc.
Reports prepared and submitted as per standards
• ANY QUESTIONS?