The Purchasing Cycle

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The Purchasing Order

The purchasing cycle is a cycle that includes a catering business buyer buying products from a supplier. It contains a number of steps that take place whenever an order with a food company is placed which is tracked via documentation and receipts kept with the supplier. This is necessary so the supplier can keep track of their food products and how much money they take in and spend. If they didn’t have a cycle then the supplier may not even know what the orders are, as these orders are usually written or typed if they are not already when they are sent to the supplier. Things that can affect the purchasing cycle are: weather because the delivery may not be able to be made due to large amounts of snow or rain. This means that the caterers needing the food can’t receive the goods and so a discount is usually given by the suppliers, which means less money to be made by the suppliers. Another thing is errors on the suppliers behalf because if one product is misread then that means that the business receiving the goods will not be able to cook the food they wanted to with that item. This would result in loss of clients or another delivery to be made; which means money loss.

Different Types of Hospitality Businesses:

On the one hand there is a school that tends to order their food on a regular basis and more often than small catering businesses because they sell and use more food, more frequently. But on the other hand a small catering business would order food less frequently as they don’t need as much. They would also buy in smaller quantities than a school would because they don’t need to buy items in bulk; especially if the food goes off quickly.

Different Types of Suppliers:

Wholesale:
This is the selling of goods in large quantities which are not available to the public. They usually sell a range of products and can deliver to caterers. You normally have to have an account with them or have a contract. The...
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