P2P

PROCUREMENT TO PAY
PROCUREMENT

 Procurement department is the backbone of the hotel as around

40% of the cost of company lies in procurement cost

 It is an important support function for day to day operations of the

hotel

 Responsible for efficient procurement of goods and services

 Responsible for setting and adhering to all Procurement Policies

and Procedures
OBJECTIVES

The basic objectives of procurement are:

Right Price
Right specifications
Right Supplier
Right quantity
Correct stock levels
Best yields
Timely payments to vendors
Sustainable Development
CSR
Satisfied Internal Customers & Management
PROCUREMENT INTERFACE…

PROCUREMENT
DEPARTMENT
 PROCUREMENT PROCESS…
Managing interface :

. Define Select Supplier Contract Ordering Expediting Evaluation

Specification Agreement

Get Specification Assure adequate Prepare contract Establish order Establish Assess supplier
supplier routine Expediting
Role of selection routine
Procurement

-Function -Pre qualification -Contracting -Develop -Expediting -Supplier

/Technical of supplier Expertise order routines -Trouble shooting Evaluation
Elements specification - Supplier Audit -Negotiating -Order -Supplier rating
-Bring supplier -RFQ (Request Expertise handling
knowledge to for Quotation) - SLA’s
production

-Functional -Supplier Contract Order -Exception -Preferred

Documents Specification Selection report supplier list
proposal - Invoices -Supplier ranking
scheme
WHAT ELSE PROCUREMENT
DOES…
 Purchase Manual
• To define various procurement activities, tasks and processes to
complete these activities

 Data Compilation
• Vendor Master Creation and update
• Item Master Creation and update

 Market Information
• Trends, Seasonality, Crop schedules etc.
• Information of item rates and vendors from competitors, other hotels,
catering units etc.
• Substitutes / alternates
WHAT ELSE…

 Vendor Management
– Vendor Account opening process / Vendor Profile Data compilation
– Vendor Audit and Evaluation Process
– Vendor Appreciation Module

 Develop Product Specifications

 MIS submitted to the management on time

 All India Contract database compilation

RECEIVING DEPARTMENT

 All goods are received at the correct temperature – frozen chilled & dry

 Goods are received in proper packaging – Plastic tubs, branded material

in original packing, no torn packets or damaged tins & containers

 All statutory markings have to be present on material, like – FPO,

FSSAI, Agmark, etc.

 All goods are verified and tallied against the purchase order

 All goods are received as per the timings specified

 Reports prepared and submitted as per standards

STORES DEPARTMENT

 All goods are stored at their ambient temperature – Frozen, chilled & dry

 Optimum par stocks to be maintained for all the Inventory items

 Materials are strictly issued with an approved Requisition ONLY

 Co-ordinate and update user departments on slow & non moving products

 FIFO is strictly followed for all products

 All standard procedures for storekeeping are strictly followed like –

distance from floor and walls, heat, lighting, etc.

 Reports prepared and submitted as per standards

PROCUREMENT TO PAY
PROCESS