Importance of food purchasing?

By January 19, 2022 No Comments
Food Purchasing…Understand the controls to save time, money and reduce wastage!

You will need to understand the importance of food purchasing to balance your commitment to cutting stock carrying costs, against the possibility of a stock-out.


Ingredient 3: Food Purchasing


What is the importance of food purchasing?


It would be ideal if new orders arrive just as old stock runs out, with safety stock ensuring that you can cope if supplies are delayed.

Delivery Time

Delivery time is the time it takes for the supplier to fill your order and transport it to your business.  Your stock records maintain a history of your dealings with suppliers and can help you assess their reliability.  Where possible you should negotiate precise delivery times when you place the order.

Safety Stock

This is the amount of stock you may wish to carry in excess of requirements to protect you against unforeseen delays in delivery and allow for potential sales increases.  How much safety stock to keep will depend on your experience with your suppliers.  

So far we have assumed that there are no time lags in deliveries and that suppliers always supply on time.  This ideal situation rarely exists.  

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