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Biaggi's Purchasing

Essay by   •  May 10, 2011  •  319 Words (2 Pages)  •  686 Views

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Biaggi's Purchasing

Biaggi's activities in purchasing include both operational and strategic tasks. Operational activities are performed in order to prevent trouble. They are also usually done with a routine process that is followed over and over. These activities include purchasing of equipment and supplies that are going to be used in the long run. This may include appliances, kitchen equipment, bar equipment, etc. These supplies are bought by the same suppliers every time. Budgeting is another operational activity that occurs in the organization. Budgeting is another operational activity done by the purchasing department. Budgets are presented to all purchasing activities in order to keep spending under control and decrease costs. When purchasing in the restaurant industry it is very important to make sure you do not stock out of a product. This could cause a decrease in customer loyalty and demand. To avoid this, the purchasing department keeps precise records of levels of inventory.

Strategic activities are done by Biaggi's in order to achieve goals of set profits. Biaggi's has the opportunity to improve competitive position by purchasing products of superior value. This helps them gain a competitive advantage on other restaurants in the industry. Another strategic activity that Biaggi's partakes in is forecast purchasing. The demand in the restaurant industry does vary during different seasons. For example, during summer months, daily demand increases. By forecasting thee events, Biaggi's is able to serve more customers and become efficient with opportunity maximization.

Biaggi's takes advantage of various technologies in order to optimize their purchasing and supply chain process. A common technology used in the industry is the FOODCO software which is an electronic system that makes it possible to keep track of what you purchase and how much inventory you have. This



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