Importance Of Procurement Cycle

“Effective procurement affects inventory control by obtaining the right items in the correct quantity for the best value” ("Inventory Management and Tracking Reference Guide," 2012, p. 28). It is important for foodservice industry to have proper equipment and suppliers, to support the receiving protocols, enable efficient transportation and store the diverse food items safely and conveniently (Doty, 2004). Stores management and procedure operations are important aspect of procurement cycle which will help the business to run smoothly, more efficient and effective. This paper will look at what is good storage procedure and it’s objectives. Furthermore, explaining the procurement cycle and its interactions with stores and storage department.

2). Storage often completed in conjunction with receiving, and it is important for all foods to be placed in proper storage as quickly as possible after receiving, unless they are to be processed straightaway (Gregoire, 2010). Feinstein and Stefanelli (2012) states, to achieve storage objectives for a smooth-running operations it is important to control the adequate temperature and humidity in the storeroom, use of adequate equipment, minimisation of proximity of storage area to receiving and production areas, proper security, storeroom regulations and guidelines. Good stores management and operation procedure (SMOP) plan should include a several important activities, to achieve smooth and effective run of the business.

• Good storeroom manager must organize and classify inventories in a systematic fashion to make general control easier and satisfy local legal requirements (Feinstein & Stefanelli, 2012; Gregoire, 2010).

• It is important to determine usage rates for all inventories, to keep track of the usage and improve the ordering

As it has been stated before in the paper, good inventory and storage control interacts with different aspects of procurement cycle, to achieve best storage procedures. It is Important to understand customer needs in foodservice industry, to create menu items, which people are willing and able to buy, this will unable chefs to create standardized recipes, to make purchase specification and stock request. It is also important to control the sales, to ensure all of the items on the menu are selling and making profit for the business (Baldwin, Wilberforce, & Kapur, 2011). This will ensure there are no overstocked items and no spoilage in the storerooms. Controlling sales will also help with calculating pax stock amount needs. Once the stock request from the kitchen is done, stores manager job is to contact suppliers and purchase needed ingredients. Receiving is one of the closest related aspects to storage in the procurement cycle. Once the order arrives to the warehouse, receiver needs to carefully check the order and place it in proper storage quickly after receiving, to ensure the safety and freshness of the produce. A good store manager needs to ensure the entire inventory is properly positioned, labeled and has safe storage conditions, as well as rotating First In First Out to avoid spoilage(Biles