Chapter 11-12

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Application Service Provider (ASP)

A company that distributes software over the internet from a central location to customers in other locations.

Approved Supplier List

A list of all vendors who buyers are allowed to purchase from. An excellent security precaution.

Paid-outs

A method that is fairly popular with small hospitality operators. That is, assuming that everything is acceptable when the delivery is received, the reciever reaches into the cash register and pulls out the appropriate amount of cash to pay the delivery driver. Instead of pulling out cash, the receiver could pull out a preprepared check and give it to the delivery driver. Either way, the emphasis is on paying COD.

Opportunity Buy

A purchase intended to save a great deal of money. The products are price discounted. A quantity discount is an example of an opportunity buy.

Bonded Supplier

A supplier that has adequate insurance coverage demanded by the local government that issues business licenses.

Approved Supplier

A vendor that the buyer is allowed to buy from.

Trade-In Allowance

Amount of money a vendor credits your account. when you buy a new piece of FFE (especially equipment) when turning in an older model.

Cash Discount

An award for prompt payment, for paying in advance of the delivery , or using a cash-on-delivery (COD) bill-paying procedure.

Bill-Paying Service

An outside company entitled to use a company's money to pay for products or services purchased by the buyer. Bills are typically paid automatically by accessing the buyer's company's bank account(s). The service is typically used to reduce administrative expenses and to increase efficiency.

Payment Terms

Another name for credit terms

Buyer Fact Sheet

Another term for buyer profile.

Buying Service

Another term for buying club

Contract House

Another term for buying club

Daily Bid Buying

Another term for call sheet buying

Daily-Quotation Buying

Another term for call sheet buying

Credit Rating

Another term for credit score.

Request for Bid

Another term for request for quote (RFQ)

Warehouse Club

Another term for wholesale club.

Cash and Carry

Another term for will-call buying

Escrow Account

Buyer funds held by an independent third party who releases them to the vendor once the transaction is completed satisfactorily. Commonly done when purchasing construction services.

One-Stop Shopping

Buying everything you need from one vendor. Alternately, buying everything you need from the fewest possible purveyors.

Supplier Selection Criteria

Characteristics a buyer considers when determines if potential vendors should be added to the approved-supplier list.

National Distribution

Clause in a national contract stipulating that all restaurants in the chain will be able to rely on getting the same types of products delivered to their back doors.

Consulting Service

Company that specializes in helping others by giving advice and/or accomplishing specific tasks that clients do not wish to do on their own.

Ineligible Buyer

Company that would like to bid for a buyers business, but would not be allowed to bid because it does not met certain qualifications set by the buyer. For instance, the company ma not be large enough, it may not have sufficient financial strength, and so forth.

Case Price Per Unit

Equal to the AP price for one case divided by the number of units per case. For instance, if you pay 12 dollars for a six-can case of canned tomatoes, the case price is 2 dollars per can IF a vendor is willing to sell you less than one case, but charges you only 2 dollars per can, he or she is charging the case price and not a premium price for a broken (busted) case.

Fill Rate

Equal to the amount of items delivered divided by the amount of items ordered. For instance, if your ordered 10 items and the vendor delivered 9, the fill rate is 90% (9 divided by 10). A fill rate less than 100% indicates that the vendor is out of some items and has to back order you.

Supplier-Buyer Relations

Establishment of firm and fair business dealings and interactions between buyers and suppliers and their representatives.

Merchant Fee

Fee suppliers pay for accepting credit card payments instead of cash or check. The fee is usually some percentage of the amount charged by the buyer.

Bank Charges

Fess charged by financial institutions for carious types of services provided.

Cost of Paying to Late

Includes things such as damage to a company's credit rating, late fee charges, and being required to pay COD for future purchases.

Value Analysis

Involves examining a product to identify unnecessary costs that can be eliminated without sacrificing overall quality or performance.

Invoices on Account

Involves reconciling all invoices and credit slips received during the billing period with the end of period statement sent b the vendor. If everything is correct, the company pays the total amount listed on the end-of-period statement, or makes the minimum payment and lets the balance ride until the next period.

Will-Call

Merchandise not delivered to the restaurant; the buyer picks it up at the vendors location. The buyer may also have to pay for it when picking it up, unless the company has established credit with the vendor.

Deposit

Money, or other asset, used to ensure that future products or services will be provided. Alternately, money used to ensure that returnable items, such as reusable packing crates, will be returned to the vendor.

Cash Rebate

Occurs when a vendor charges the full AP price for an item, but later on, after you provide proof-of-purchase documentation, he or she will send you a check for a small amount of money, or will credit this amount to your next bill.

Responsible Bidder

Opposite of ineligible Bidder. Company that is considered large enough, has sufficient financial strength, has a good reputation and history of satisfactory performance, and so forth, and because of this, is placed on a buyers approved-supplier list.

Market Research

Organized effort to gather information about customers. Typically used by businesses to discover what people want, need, or believe.

Open-Market Buying and Market Quote Buying

Other terms for call sheet buying.

Sole-Source procurement, prime-vendor buying, or single-source buying

Other terms for one-stop shopping.

Buying Plan

Overall selection and procurement strategy. Includes reasons why it was selected, and relevant policies and procedures needed to carry it out successfully.

Free Sample

Part of the marketing strategy used by vendors to sell products. Buyers are allowed to test a product in their own facility without having to pay for it.

Stretching the accounts payable

Paying bills after the credit period has expired. This might be done by a buyers company if it is temporarily short of cash. However, suppliers may change interest if bills are paid after the credit term expires.

Cash on Delivery (COD)

Paying for a shipment when it is delivered. Payment may be in cash, check, credit card, debit card, or other acceptable means.

Lead Time

Period of time between when you place an order with a vendor and when you receive it.

Distributor Sales Representative (DSR)

Person employed by a vendor to sell products and provide support functions to restaurant operations.

Promotional Discount

Price discount awarded to the buyer if he or she allows the vendor to promote the product in the hospitality operation. Or if the hospitality operation agrees to personally help promote the sale of the product to its customers.

Relationship Marketing

Procedure that does not view marketing as selling products one at a time, that is, it does not view marketing as a series of individual transactions. Instead, it refers to the need for vendors and customers to form personal alliances that will lead to the sale and purchase of products and services that mutually benefit one another.

Cash Management

Procedures used to ensure that a company's cash will be tightly controlled and handled effectively and efficiently.

Delivery Schedule

Purveyors planned shipping times and dates

Supplier Services

Services, such as free delivery, generous credit terms, and so forth, provided by vendors to buyers who purchase their products.

Fixed Bid Buying

Shopping around and soliciting competitive bids for long-term contracts.

Volume Discount

Similar to a quantity discount. The buyer agrees to purchase a huge volume of goods; however, unlike a quantity discount, he or she buys more than one type of merchandise.

Ordering Procedures

Standardized process used by the buyer to ensure that the correct amounts of needed products are ordered at the appropriate time.

End-User Services

Support functions provided to buyers by vendors. Includes everything except the sales effort, which is provided by a sales rep, such as a food broker.

House Account

Term used by a vendor to identify a very loyal customer. A customer who continually buys from a vendor and is not interested in buying from competing vendors

Cost-Plus Buying

The AP price the buyer pas is equal to the vendors cost of the product plus an agreed-upon profit markup.

Ordering Cost

The amount of money spent to make an order, receive it, and store it. Includes things such as labor needed to perform the work and administrative costs such as faxing, photocopying, and cell phone charges.

Credit Period

The amount of time a borrower has before a bill must be paid.

Credit Period

The amount of time a borrower has before the bill must be paid

Profit Markup

The difference between the vendors cost of a product and its sales price. Alternately, the difference between the EP cost of a menu item and its menu price

Route Salesperson

The driver who delivers standing orders to the restaurant.

Minimum Order Requirement

The least amount of an item a buyer needs to purchase before a vendor will agree to sell it. Alternately, the least amount a buyer needs to purchase before a vendor will agree to sell it. Alternately, the least amount a buyer needs to purchase before he or she can qualify for free delivery.

Cost of Paying to Early

The loss of interest income that could have been collected if the cash were invested between the time the bill was paid early and the time it had to paid.

Barter

The practice of trading your products or services for something you need. Intended to reduce your out-of-pocket expense.

Credit Risk

The probability that a borrower will not pay.

Credit Terms

The type and amount of financing a vendor will provide, along with the prescribed type of bill-paying procedure that must be followed. Also included are things such as a description of late fees, penalties, and so forth.

Standing Order

Under this procedure, a driver (usually referred to as a route salesperson) shows up,takes inventory of what you have, then takes off the trick enough product to bring you up to some predetermined par stock, enough to ast until he or she visits you the nest time. The driver writes up a delivery ticker after it's determined what you need and the products are placed in your storage facility.

Request for Quote (RFQ)

Used by buyers who shop around for the best possible deals. It is a list of items needed and their specifications, given to potential vendors who are then asked to quote, or bid, The AP prices they would charge fro them.

Call Sheet Buying

Used when shopping around on a day-to-day basis. The buyer contacts several purveyors seeking their AP price quotes. He or she then purchases from the one offering the lowest AP price.

Buyer Profile

Vendor file that contains information about current and potential customers. Typically used by sales reps to help them prepare the best possible sales presentations.

Socially Responsible Supplier

Vendor who uses environmentally safe products and/or procedures. Alternately, vendor who promotes social causes, supports charities, and so forth.

Sealed-Bid Procedure

Vendors AP price quotations are secret until they are all opened by the buyer at the same time. typically done with fixed-bid buying.

Returns Policy

Vendors procedure a buyer needs to follow to return products and receive credit for them.

Buyout Policy

Vendors willingness to purchase from a customer, a competitors products, so that the customer can immediately begin purchasing similar products from them.

Forward Buying

WHen a buyer purchases a large amount of product (for example, a three-month supply) and takes delivery of the entire shipment.

Stockless Purchasing

When a buyer purchases a large amount of product, for example, a three-month supply, and arranges for the vendor to store it and deliver a little at a time.

Credit slip

When a shipment, or partial shipment, is unsatisfactory, toe driver will give a credit slip to the receiving clerk, signifying the amount of credit that will be applied to the restaurant's account. It eliminates the need for the restaurant to prepare a credit memo.

Bid Buying

When buyers shop around seeking current AP prices from vendors. The vendors are asked to quote, or bid, the prices they will charge. Intended to give the buyer competitive pricing information that will allow him or her to get the best possible value.

Back Order

When your shipment is incomplete because the vendor did not have the item in stock, the invoice will state that the item is back ordered. You will receive the item later.

Reciprocal Buying

You buy from me, I'll buy from you.

Credit Card Payment

paying bills with a credit card instead of cash or check.


Ensembles d'études connexes

Decentralized User Administration Overview Exam Answers

View Set

Students Question & PPT & Scrum Quiz

View Set

Bone, Tendons, Ligaments, and Cartilage (connective tissues)

View Set

Chapter 8: Supporting Your Ideas

View Set

Intro to Macroeconomics Chapter 7

View Set

Unit 20 - Knowledge/Quiz/Exam Questions

View Set

Accounting Unit 4 True and False

View Set