Case study

You are a purchasing manager for Salford Hotel. The hotel has following outlets:

An all-day caf seating 100 pax open 7 days for breakfast, lunch, and dinner.

A sports bar for up to 50 pax.

A formal lounge bar with seating for 50 pax.

A gaming room with 25 poker machines.

A small coffee shop outside (which is outsourced to private contractor) seating 20.

All stock required for any of the above outlets must be requisitioned through you. You are responsible for dealing with suppliers, placing orders, receiving deliveries, storing, and distributing stock.

You can negotiate contracts with suppliers up to the value of $100,000 per annum on your own. Above this amount, you must negotiate with the finance manager and the general manager to obtain final approval for all contracts.

The hotel owners have given approval to extend the cafe dining area which will seat an extra 50 pax. Walls will be demolished, and large glass panels and doors will be installed. The new area requires appropriate outdoor furniture, and additional cutlery, crockery, glassware, and service equipment.

Because the extended area will be now under open sky, to accommodate cooler months they are considering purchasing freestanding heaters.

The extension will take three months from now. It has been forecasted that the new seating area will lead to a 40 per cent increase in business over the next few months.

You have been given the job of sourcing all furniture, service equipment, and additional cutlery, crockery, and glassware. You may decide to use current suppliers or locate new sources. Price and the ability to supply the products and services within required timeframes will be important considerations. Any contracts for equipment must include delivery and installation deadlines.

The food and beverage manager has indicated that the current service equipment (especially the crockery) is showing stains and signs of long-term use. Management will consider investing in new crockery and possibly cutlery for the whole cafe if the price is within budgeted range. Otherwise, amounts required to increase current supplies will be purchased. However, it must match or be like the current service equipment.

Along with linen contractor, choose any 1 of the following areas to focus on for the purpose of your negotiations.

Service equipment: glassware, cutlery, crockery, etc.

Furniture: tables, chairs, service stations

Large or small bar equipment for the external bar