HAT202: Marking Guide on Hospitality & Tourism Management -

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Hospitality & Tourism Management Assignment Question

Students are required to write an essay on one of the following Hospitality Management topic:

• The Food & Beverage System – Fundamentals

• The Nature of Food & the Menu

• Product Flow & Facility Design

• Procurement, Preparation, and Service

Hospitality & Tourism Management Assignment Solution

Procurement in hospitality industry

In today's competitive business environment, there is an increasing focus on delivering value to the customers. Hotel companies are focusing on how to offer the services and products while keeping the cost as low as possible. A parameter of the hotel industry which is usually left out in the cost cutting efforts is the area of logistics and supply chain operations of the hotel. A well developed and synchronized logistic and supply chain management system would give the individual hotel companies a sustainable competitive advantage. This would be done as the efficiency and effectiveness of the supply chain would increase. (Odoom, 2012)

Procurement practices are used to support the operational needs of the company by focusing on the purchase of the product, receiving the product from the suppliers, building a strong relationship with the vendors and by managing the procurement process by identifying opportunities for improvement and managing the internal operations optimally. Today, reducing costs has been the prime focus as it would lead to the best costs and value to its customers.

The Purchasing Process

The purchasing process is the process of buying raw materials, goods, products or any other service required by the organization. For the hotels, this purchasing process is for the raw materials, food supplies, equipment, accessories, etc. The purchasing process depends on the decision-making process of the organization and is decided after comparing through the alternates available and selecting the best alternative. The purchasing process consists of the following phases:

Need identification

This forms the base of the purchasing process. Any product will be purchased in order to satisfy this need of the organization. This need can arise due to a shortage of product or due to high usage of a particular product.

Selection of the product

To satisfy the need, the product is finalized after comparing it with the other alternatives available. Once finalized, the best alternative is selected. The products available are compared with each other for various parameters and then the best or the optimal one is selected. These parameters may vary from product to product. These generally are the cost of the product, the shelf life of the product, usage by the organization of this product, etc.

Appointing the Purchase Team

A purchasing team is appointed from the existing resources which will manage the purchasing process

Specifying the Technical Requirements

The commodities required are clearly listed and specified to the purchasing team

Appointing the budget

An appropriate budget is appointed for the team to make the purchase

Research of Potential Suppliers

For the requirement of the purchase, the research is done for a list of potential suppliers who can supply the goods required. These are differentiated with the value of goods they supply and on other parameters.

Solicit Bids

Bids are received from these suppliers with respect to the product to be supplied.

Awarding the contract

Out of the received bids, the contract is given to the optimal supplier and the process ends. Once ended a formal note of this process is kept for a recording purpose.