Principles of purchasing

There are five primary principles of purchasing that need to be upheld by the Housekeeping and the purchase department.

Right quality: The housekeeping department is responsible for providing the guests with a clean, comfortable, and safe environment as well as meet and exceed the guest’s expectations. In this regard the department needs to buy the best products. Value for money is the factor in each of the product supplies to the guestroom and public areas. The entire range of items has to meet the standards and specifications determined by the department and the hotel management.

Right quantity: Placing a purchase order of the right quality is of utmost importance for any organisation. Suppliers usually offer huge discounts large quantities but that should not influence the department’s decision. The following factors should be kept in mind while ordering the right quantity of material:

• The cost of the order being placed
• The cost of storage and carrying charges for holding stocks
• Quantity discount
• Stock level and order point
• Buffer stock
• Budgetary controls

Right price: One of the major concerns for both the housekeeping and purchasing department is to get the supplies at the right price. An in-depth knowledge of the market is vital to make sure that the right price is being paid i.e. the payment corresponds to the exact value of the material being purchased. While calculating the right price ex-showroom the terms of payment should also be attended.

Right time: The material should be made available at the right time. Lead time, which is the period between the indent originating from the housekeeping department and the time the material is ready for use, should be minimal. The total lead time which includes the supplier lead time plus the internal processing, clearance receipt, and inspection time should be as low as possible to work on lower inventory level. The time should also be right as regard ensuring immediate availability of a particular product in the market.

Right source of supply: The right source of supply is critical to the Executive Housekeeper. If the source of supply is correct, right quality, quantity, price, and time are a natural consequence. The selection of the ideal supplier is crucial for both the housekeeping and the purchase departments in which they are aided by:

• Knowledge and experience
• Catalogues, internet, etc
• Hotel supplies directories
• Salespersons
• Trade associations and association companies