315NUTR test Flashcards
Food safety and Inspection Service enforces these acts…
- Meat Inspection act
- Poultry products inspection act
- eggs inspection act
Misbranded
Label does not include info mandated by law, Label info is misleading
USDA
Performs mandatory inspection of meats, poultry, and other processed food, uses official inspection stamp to indicate product is high quality and produced under sanitary conditions
FDA
Regulates production, manufacture, and distribution of all food involved in interstate commerce except meat, poultry, and eggs
Standards of Fill
Regulates the quantity of fill in a container
Agricultural Marketing Service
Part of USDA and responsible for COOL
Food, drug, and cosmetic act
No food may enter interstate commerce that is deemed adulterated or misbranded
FDA enforces these acts…
- Food, drug, and cosmetic act
- Fair packing and labeling act
- Nutritional labeling and education act
- Food and safety Modernization act
National Marine and Fisheries Service
Performs voluntary inspection system for fish, fish products, and grade standards
Standards of Identity
Defines what a food product must contain to be called a certain name
Adulterated
Contains substances injurious to health; any part of it is filthy or decomposed; prepared of held under unsanitary conditions; contains portions of diseased animals
Standards of quality
Limits and defines the number an kind of defects permitted; applies mainly to canned fruits and veggies
Environmental protection agency
Sets tolerance levels for pesticide residuals in foods and determine quality standards for water
National Oceanic & Atmospheric Administation
Oversees fisheries management in USA: Under authority in 1946 Agricultural Marketing act, provide inspection services for fish, shell fish, and fishery products to the industry
Bureau of Alcohol, Tobacco, & Firearms
Monitors the production, distribution, and labeling of alcoholic beverages that contain > 7% alcohol
US Public health service
Inspects some shellfish and also advises local and state gov’t on sanitation standards for the production, processing, and distribution of MILK
What is the definition of purchasing (what’s another word for it?)?
- An essential function focused on securing resources needed to operate a foodservice
- Procurement
What is the basic flow of purchasing activities?
Check Figure 6.1 !!
Market
A medium through which a change of ownership occurs; moves product from the original source of supply to the point of service
Commodities
raw agriculture products used to produce foods
Marketing Channel
the food processing and distribution system, beginning with the grower of raw food products and ending at the final customer or of consumption
Distribution System
growing, harvesting, storage, processing, manufacturing, transportation, packaging and distribution
Primary Market
XX
Secondary Market
XX
Local Market
XX
Middleman
are wholesalers who do not assume ownership of goods but whose responsibility is to bring buyers and sellers together
Brokers
serve as a sales representative for a manufacturer or a group of manufacturers. Paid on commission, often a percentage of the product sold to the distributors or the end user. Also introduces new products to potential buyers.
Manufacturer’s representative
hired by the manufacturer to sell their products, introduce new products to potential buyers, and address product or delivery issues
Food buyers should be aware of what?
- What is happening in the market
- Economic trends
- Government policies or change in laws (NAFTA)
- Adverse weather conditions (crop damage causing price increase or product scarcity)
- Changing consumer needs and wants
What is a buyer?
- A member of the professional administrative team and is held to high standards of work performance and ethical behavior
- Should have good communication skills and be able to negotiate with sellers to reach an agreement
- The foodservice department must be able to communicate its needs to the buyer
- The buyer represents the institution in negotiations with the market representative
Discuss ethics in purchasing-kickbacks, collusion, bribes, and conflicts of interest
- Products should be evaluated objectively, and buying decisions made on the basis of quality, price, and service
- Buyers may be subject to bribes and other types of inducements to influence buying decisions
- Collusion – a secret arrangement or understanding between the buyer and the seller for fraudulent purposes
- Example is kickbacks – where the buyer accepts something of value from the vendor in exchange for a sale
- Other conflicts of interest include the vendor providing gifts, meals, or samples
Centralized purchasing
– a purchasing department that is responsible for buying instead of department manager
• Used in large organizations
• Advantages – a large purchasing department may have better negotiating power than an individual; saves department level managers times
• Disadvantages – friction may results if there is not a clear understanding of quality standards
Group OR cooperative purchasing
- buying arrangements are where several independent (not under same management) organizations join together to have more purchasing power
• The buyer is paid by a fee (based on a percentage by order) by the organizations in the group
• Deliveries are made to a central warehouse or to each individual business
• Organizations in the group must agree on food specifications
GPO’s purchasing
purchase everything for the whole organization
• Represents members organizations by negotiating with various vendors on behalf of the GPO
• The department manager must use the buying group and is not usually able to buy items not on the buying contract
• Advantage is overall cost savings for the institution rather than the individual units
What is a rebate?
- Money paid to foodservice organizations when a certain volume of purchases are met
- Used to guarantee sales volume for the food distributor
- Usually negotiated by large regional foodservice organization
Define vendor
- a seller, a source of supply
• Selection of vendors is one of the most important decisions that must be made in a purchasing program
• The buyer should carefully evaluate the product line of the vendor to ensure they meet quality specification of the organization
Broad line vendors – carry large inventories of products and supplies
Broad line
carry large inventories of products and supplies
Specialty
carry a limited product line (such as meat or produce)
Prime
majority of purchases made with this vendor who carries many product lines
What’s a value added service?
- Vendor will support the equipment or provide service programs with the purchase of certain food products
- Coffee pots or juice machines
Informal/Open market
- Common in smaller foodservice operations; involves ordering needed food and supplies from a selected list of vendors on daily, weekly, or monthly pricing quotations
- Orders are made by fax, computer, phone, or personal visit
- Buyer and vendor must agree on quantities and prices before delivery
Formal/competitive bid
- Written specifications and estimated quantities needed are submitted to vendors with an invitation for them to quote prices
- Purchasing agents for local, state, and federal government-controlled institutions are usually requires to use this purchasing method
- Advantages – formal bids minimize understandings about quality, price, and delivery
- Disadvantages – time consuming and leads to manipulation due to large amount of money involved
Cost-plus purchasing
• A buyer agrees to buy certain items from the vendor for an agreed-on period of time based on a fixed mark-up over the vendor’s cost. Used in large volume buying
Prime vending
• Involves formal agreement with a single vendor to supply the majority of product needs. Results in time savings and better pricing through volume buying
Blanket Purchase agreement
• Used when a wide variety of items are purchased from local suppliers, but the exact items, quantity, and delivery requirements are not known in advance
Just-in-time purchasing
• The product is purchased in the exact quantities required for a specific production run and delivered just in time. Goal is to have as little of inventory on hand as possible to maximize cash flow
What factors determines what to buy?
- Menu – food quality; market form of the food; sustainable foods, local foods, foods with certain types of packaging
- Equipment
- Labor
- Cost
What factors determine make vs. buy for a product?
• Should we make it ousrselves or buy it from supplier?
o Decision based on food quality, food quantity, and product and labor costs
• Should we make or buy cherry pie?
o Raw food cost = .98 cents/pie
o Time to make = 1 hour
o Frozen prebaked pies = 1.35/pie
Quality standards vs. grades: What is the difference?
- Quality standards – refer to wholesomeness, cleanliness, or freedom from undesirable substances. Quality is denoted by grade, brand, or condition
- Grades – market classification of quality. Grades have been established by the USDA, but their use is voluntary