SUPPLEMENTAL MATERIAL QUESTION
1. There are many ways in which purchases can be mishandled resulting in unethical practices. What are some principles that can be put into place to safeguard against this?
CHAPTER 16 ANSWER
Having security and controls in place can help guard against purchasing malpractices. A) To minimize kickbacks, routinely review invoices and competitive bids. Audit the invoices so that this can be documented. Separate purchasing and receiving so that the person purchasing cannot pad invoices or claim purchase of goods that have not been received. Periodically review the distribution summary generated by the Finance Department that lists every check cut for the department with the payees’ names to ensure that all vendors listed are valid as well as check for duplicate invoices.
2. Describe a competitive bid process for a pizza vendor for your school food service. What do you hope to achieve with this process?
Competitive bidding is a process of issuing a public bid with the intent that companies will put together their best proposal and compete for a specific project. By law, this process is required for every government agency that issues a bid. Competitive bidding creates a transparent environment that is open and fair. This essentially means that any company, regardless of their company size, annual revenue or other similar factors, will be welcomed to the bidding process and will be given a fair chance as the rest of the competition.
A school food service will issue an RFP (request for proposal) with specifications for the pizza that it will be buying (Cheese, pepperoni, size, quantity, packaging, ingredients etc.). Usually the bids are advertised so as to get as many vendors competing for the bid. There is a deadline for submission and after the deadline, no more bids will be accepted. The bids are usually received in sealed envelopes for fairness and the bid is awarded to the vendor who has met most/all the criteria set forth in the bid process.
3. Your foodservice operation has been using multiple vendors for purchasing and would like to make a change to a Prime Vendor. How would you make the change and what advantages would you gain from a Prime Vendor?
Sysco is a Prime Vendor that can supply foodservice operations with food, supplements, paper, and chemical items. Supply specifications for all the products used by the operation and get the best pricing for those items. A prime vendor contract will give Sysco a higher percentage of purchasing power, in exchange for better or preferred pricing for key menu items.
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Foodservice Management—By Design
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