Procurement, Preparation and Service - Coursework Example

ID Number: Procurement, Preparation, and Service Introduction The hospitality industry is a wide field including lodging, transportation, food line, cruises, event planning and several other functionalities within the tourism industry. The global hospitality industry is a multi-million dollar industry which is mainly dependent on factors like disposable income, recreational interests and availability of leisure time. Hospitality industry is a high value industry in almost all countries across the world. The main function of hospitality is to provide accommodation and food services to the incoming tourists. The industry is a highly functional domain and requires effective management in every part. It is largely based on services though products and facilities remain an equally significant part for the success of the industry. Procurement of raw materials, especially for food items is a very crucial function of hospitality. Also, the preparation of food is another significant function. Food and beverage often acts as the physical evidences for the service perception regarding the hotel or the lodge. Customer services, basic services as well as augmented services act as key deciders of competitive advantage in the hospitality sector. Discussion Procurement Procurement is an important subset of hospitality management. The procurement in the hospitality sector is focused on the purchase of goods and services that are required in the different components of hospitality sector like the hotels, resorts and restaurants etc. The needs of the hospitality industry are very specific and are different from that of the other industries. As such, the procurement processes in hospitality management are also significantly different from that in other disciplines. There are four main aspects included in procurement in hospitality management. These are sourcing, payment terms, contract negotiation and residual value management. The sourcing of raw materials in the hospitality sector includes the identification and selection of suitable suppliers, issuing the requests for quotations and proposals, inspection of manufacturing plants etc. Quality is the main issue for consideration in the procurement process of hospitality management. The primary focus of procurement in hospitality management is on quality in case of consumable items and on replacement and longevity in case of fixed assets like equipment, furniture etc. Purchasing in the hospitality sector involves the procurement of raw materials that the establishment will require for serving the guests. Supplier section in this industry is a critical decision and involves multiple stages as given in the figure below (see fig. 1). Figure 1 The purchasing managers in the hospitality segment should have specific skills like interpersonal communication, customer focus, change management, conflict resolution, problem solving, computer literacy, influence and persuasion, analytical ability, negotiation skills, decision making skills etc. The skills of the purchasing manager are key drivers of the effectiveness of the procurement system. There are two main methods of purchasing in the hospitality industry. These are formal purchasing and informal purchasing. The formal purchasing involves communicating directly with the suppliers either though face to face or through telephonic communication modes. Oral communication is more prominent in informal purchase methods. The formal methods of purchase involve the use of written documentations and agreements. Bid buying is common in hospitality procurement. Two most common types of bidding activity used for purchase in hospitality sector are line-item bidding and all-or-nothing bidding. In line-item bidding, the bidder is expected to quote a separate price for the products. Line item bidding includes the use of an Invitation for Bids (IFB) document. The all-or-nothing bid is a contractual bid in which the buyer has to bid within the price range specified by the suppliers. Buying methods may be more varied. The most commonly used buying methods are independent purchasing group purchasing centralized purchasing, warehouse club and just in time purchasing (see fig. 2). Figure 2 A number of new concepts are emerging in the hospitality sector fuelled by the advancements in technology and the shifts in the ways of conducting business. One of the main innovations in the domain of hospitality has been the introduction of the electronic procurement concept. The electronic procurement method actively uses formal purchase processes and a number of technological tools. The world has been interconnected by technological advancements like the internet and intranet. This has made a number of options available for the companies to source and procure raw materials. Electronic procurement is a more effective procurement process which enhances the quality and efficiency of the functions of the companies which are existent in the hospitality sectors across different countries (Chon and Sparrow 78). Just in time is a major concept that is being taken up by many companies in the hospitality domain for use in the procurement processes. Inventory control is a key part of the procurement processes in this industry. This is generally done through the use of a number of key inventory control tools. The aim of all these small functions is to create a total procurement process that is both efficient and suitably controlled. This in turn ensures that the quality of the food and other services is adequately maintained. Preparation The production stage in hospitality includes the process by which the purchased raw materials are converted into menu items that can be served to the customers. The analysis of production demand is essential because an inappropriate consideration of production demand may lead to underproduction or overproduction both of which have the potential to negatively impact the functioning of the hospitality business (McSwane, Rue and Linton 501). The production section of hospitality sector should be established with efficient systems and personnel as well as sufficient controls in place so that the production of food is consistent, safe and cost effective (Marchiony 142-144). There may be standardized and format specific recipes for the production of menu items. The standard recipes are decided by a 3 stage model which involves recipe verification, product evaluation and quantity adjustment (see fig. 3). Figure 3 The production methods in hospitality can be categorized under two broad heads. These are dry heat cooking and moist heat cooking. The moist heat cooking methods include steaming, stewing, poaching, simmering, boiling, blanching and braising. The dry heat cooking methods include roasting, baking, broiling, pan frying, barbequing, deep fat frying, sautéing, grilling and rotisserie cooking. There are three main preparation service systems that are used in the hospitality segment (Lillicrap and Cousins 110). These are discussed in the following section. Convenience systems: This system makes a high use of processed food items. The foods are bought in prepared form and only assembling functions like heating and garnishing are required for producing the final menu item. Commissioner system: In this system, foods are prepared in high volumes at a central place and distributed in different service outlets. Distribution is the most significant part of this food preparation system. Ready food system: In this system, food is prepared in house and frozen or chilled for serving the customers at a later period. Packaging, storing and distribution are different activities involved in this food preparation system. This preparation system is becoming popular because the management can exercise more control over the preparing process as well as on cost, quality and handling of the food items which are prepared much ahead of the time of serving (Martin 90). Hospitality management in the modern world has started giving adequate focus on energy and water conservation to ensure sustainability. The main resources conserved by the hospitality industry are energy and water because these are the most commonly used resources in this sector. Service Figure 4 The food and beverage services in hospitality management may be categorized into the following major types (see fig. 4). Table service: Table services in the hospitality management may be further categorized into three types which are American style, French style and Family style. The family style table service is the most commonly used table service in the hospitality sector. In table service, the customer selects from the menu and is offered complete service by the staffs. Self-service: Self-service is done in which the customer himself puts the items in the tray and carries it. The cleaning may be done by the staff or customer. Self-service can also be of many variations including service provided through buffets, cafeterias, vending machines, mobile food services and other quick services. Delivery service: The delivery service aims at delivering food to the place where then customer is located. The food items may be predetermined or selected from the menu. Take-out service: In take-out service, the customer can order at a single order placing point and also carry the food tray himself. The customer can consume the food in the dining area or opt for a take away parcel. Tray service: Tray service is more like buffets services in which specific tray systems are there. These trays include pre-selected items which the customers can pick up after payment. Counter service: In counter service, the customer has to go to a specific ordering point and place an order. The food may be delivered by the staffs or can be carried by the customer as well. Customers generally rate the level of customer service on the basis of two dimensions. These are the procedural dimension and the personal dimension (Ninemeier and Hayes 414). The procedural dimension includes the established standards and systems that should be complied with while delivering the products and/or services. The personal dimension, on the other hand, includes the ways in which the customer service providers interact with the customers. This is usually measured by the behaviors, attitudes and verbal skills of the service providers. Both dimensions can be considered critical from the point of view of the customers. The customer service delivery in the hospitality segment involves four main patterns (Feinstein and Stefanelli 144). These are explained as follows: Factory pattern: The factory pattern of customer service is weaker in terms of personal dimensions and stringent in maintaining procedural dimensions. This approach completely lacks in personal dimensions and provides products and services to the customers on the basis of set standards and systems. Friendly zoo pattern: The friendly zoo pattern of customer service is a personalized service. This pattern lacks any kind of procedural structure. This approach of customer service represents a kind of confusion within the company regarding the deliverable requirements. It also indicates that there remains a gap between the expectations of the customers and the deliverables of the company. Freezer pattern: The freezer pattern reflects a customer service operation that is low both in terms of procedural services as well as personal services. The freezer approach of customer service mirrors a somewhat careless attitude of the company towards the customers. Quality customer service pattern: This customer service style is strong in both the procedural as well as the personal dimensions. This style is aimed at communicating to the customers that the company cares for the customers and also tries to deliver the best quality products and services to the customers. Authenticity is another dominant dimension in the service provision included in the hospitality industry (Gilmore and Pine 340). Authentic experiences have become more critical in the service industry. Therefore, it has also become more value bearing in the context of hospitality management. Customers expect services that feel real, add to their experiential value, deal more with real people than with technology and automated systems, appeal to service sensitiveness and add to the trust factor. The companies can offer five main genres of perceived authenticity as given below. Figure 5 Conclusion It can be identified that the functioning of the hospitality sector is significantly different from other sectors. The different functions of this sector like procurement, preparation and services are also much differentiated from that in other industries. Many of the functionalities of the hospitality sector including procurement, service and preparation are much unique in nature. These three factors add to the total competitive advantage of the companies operating in this industry. Customer service is the most significant part of the services provided by the hospitality segment. Since the hospitality sector is service dependent sector, it is critical for this segment to ensure that it provides high quality services to the customers. Quality, consistency and authenticity are integral factors that are necessary for consideration in this sector. The factors of professionalism, authenticity and concern for the well-being and happiness of the customers are basic dimensions that should be incorporated in the total service management of the hospitality sector. Works cited Chon, Kim. & Sparrow, Braun. Welcome to Hospitality-an Introduction. New Jersey: Thomson Learning. 2000. Print. Feinstein, Andrew. & John Stefanelli. Purchasing: Selection and Procurement for the Hospitality Industry. New Jersey: Wiley. 2011. Print. Gilmore, James. & Joseph Pine. Authenticity: What Consumers Really Want. Harvard: HBR Press. 2007. Print. Lillicrap, Dennis. & John Cousins. Food and beverage service, (7th Ed.). London: Hodder. 2006. Print. Marchiony, Ann. Food-Safe Kitchens. New Jersey: Pearson Education Ltd. 2004. Print. Martin, William. Quality customer service: How to win the customer, 4th Ed. New York: Axzo Press. 2001. Print. McSwane, Davis., Rue, Nancy. & Richard Linton. Food Safety and Sanitation. New Jersey: Prentice Hall. 2003. Print. Ninemeier, Jack. & David Hayes. Restaurant Operations Management Principles and Practice. New Jersey: Pearson Education Inc. 2003. Print. Read More