Food

Service
Management
Presented to: Ms Sehrish Parveen.
Table of 01 Food Supply Chain Management
Presented by: Maliha Mumtaz

Content
02 Distribution Channels
Presented by: Misbah Khaliq & Aymen Wajid

03 Supplier Selection & Purchasing

Presented by: Iman Fatima & Mahnoor Gul

04
Equipment Selection in local Restaurant
Presented by Ayesha Sajjad

05 Conclusion
Presented by Noor Jee Chughtai
Food Supply Chain
Management
Presented by: Maliha Mumtaz
 What is the Food Supply Chain?
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“A food supply chain is the process that all food
losing quality products go through, from production all the way
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Color &
through to consumption.”
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There are certain key stages that appear in the food supply
chain, including:

• Production
• Handling and Storage
FREE • Processing And Package
PPT • Distribution
• Retailing
TEMPLATES • Consumption
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• Production – This is where the food supply begins at a production level, and where the food is
sourced. Whether it is grown or developed, the food will follow local and international
guidelines to ensure quality and food safety.
• Handling and Storage – This refers to the preparation and last minute steps that food
undergoes once the product has been harvested. This step will occur before food is sent to be
processed.
• Processing and Packaging – This is where the food, whether it be from plants or animals, is
converted into an edible form. Here it is especially important that the food meets all food safety
requirements before it is packaged for sale and distribution.
• Distribution – This is where, once the food is edible, it is transported and distributed to the
necessary retail or supplier.
• Retailing – This is the process used to deliver the products from suppliers to consumers, and
involves everything from obtaining the food to selling it on.
• Consumption – This takes place once the customer purchases a food from a retailer.
 Types of Food Supply Chain
There are 6 models of food supply chains, but they all fit into one of two categories –
efficiency or responsiveness. They are:
1. Continuous flow –This model is beneficial to use within high demand production as it offers
stability. This makes it ideal for manufacturers who make products which do not often change.
2. Fast-chain – These models work well for manufacturers that work with shorter life cycle
products as it is flexible and products can easily and quickly be changed out.
3. Efficient – In a competitive market, efficient models are the go-to of all supply
chains. They provide high standards at a highly efficient level.
4. Agile – When a food manufacturing business deals with specialty items,
they will likely use agile supply chain management because this allows
movement to be increased in necessary cases.
5. Flexible – The ability to be flexible in a food production line is a huge
bonus as it allows businesses to meet demand with more ease.
6. Custom configured – This refers to models which are customized.
This customization is set during the assembly and production of the
product. It can be seen as a hybrid between the agile and continuous flow
models.
Why is the Food Supply Chain Important?

• A solid food supply chain is essential in order to produce food safe

products that meet the consumer demand for high quality food.

• Food supply chains are also vital in ensuring food safety and
traceability of products, meaning both manufacturers and
consumers can easily trace food back to its origins.
What are the Problems with the Food Supply
Chain?

• Some examples of problems that the food supply chains may

face are:
o Technology.
o Increased product demand.
o Restaurants and inventory management.
o Growing demand and groceries.
Supply Chain Risk Management Strategies

Within the management of food supply chains, to minimize risk,

certain areas of production must be documented. For example,
these include, but are not limited to:
oThe incoming quality of materials.
oProcessing methodology.
oStorage conditions.
oOutgoing quality.
Distribution
Channels
Presented by:
Misbah Khaliq &
Aymen Wajid
 Channel of Distribution
You can Resize without
losing quality • Channel of distribution is the path
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Color &
through which products move from the
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consumption. It is the connecting link
between the producer and the consumer
to sell the products.

FREE • It creates the utilities of time, place and

PPT possession by bridging the gap between
TEMPLATES the point of production and the point of
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 Functions of Distribution Channel
• Sorting: The middlemen collect goods from various sources. These goods are different in quality, size,
nature, colour etc. The intermediaries sort these foods into homogeneous groups on the basis of the
size, quality, nature etc.
• Accumulation: This function involves accumulation of goods into larger homogeneous stocks, which
maintain continuous flow of supply.
• Allocation: It involves breaking homogeneous stock into smaller marketable lots.
• Assorting: Middlemen procure variety of goods from different sources and deliver them in
combinations desired by the customers. A retailer collects a variety of consumer goods and delivers
them to households.
• Product promotion: The middlemen advertise the product kept with them. They also do certain sales
promotion activities like demonstrations; special displays etc. to increase the sale of products.
• Negotiation: They negotiate and try to reach agreement on price and other terms of sale.
• Risk taking: They bears the risk of changes in demand, damage in transit, theft, spoilage, destruction
etc.
 TYPE OF CHANNEL
A distribution channel connects the producer and the consumer.
Several intermediaries function in between them. The number of
intermediaries determines the length of a channel. It is also
called channel levels or type of channels.

There are 2 types of Distribution Channels:

Direct Channel
Indirect Channel
Direct Channel/ZERO level/
Direct marketing Direct
channel of distribution :
It means making goods available to
consumers directly by the manufacturer, without
involving any intermediary.
Example: Mail order selling, Internet selling,
Selling through own sales force/ own retail
outlets ( eg. Bata, McDonald, Eureka Forbes
etc.)
Indirect channel
This distribution mean making goods available to the consumers by employing one or
more intermediaries. Following are the different types of channels under indirect channels :

ONE LEVEL In this type, the intermediary is the retailer

firm directly supplies the product to retailer who sells the
product directly to customers. Eg: Maruti Udyog sells its
cars through company approved retailers

TWO LEVEL CHANNELS Under this channel, the

manufacturer sells to one or more retailers who in turn sell
to the ultimate consumers. This is the most commonly
adopted distribution network for most consumer goods like
soaps, oils, clothes,rice,sugar etc
Three level Channels This is the longest Channel of
distribution. In this path, one more middlemen is added . So
there are three intermediaries’ involved-agents, wholesalers
and retailers. Manufacturers use their own selling agents or
brokers who connect them with wholesalers and then the
retailers.
Factors determining Choice of channels
1. Product Related Factors: 2-MARKET RELATED FACTORS:
Nature of Product: The Industrial products are
usually technical, and expensive products The following factors relating to the market are
purchased by few customers. It requires shortest particularly significant in the choice of a channel of
channel (Direct Channel). Consumer product are distribution.
standardized products which can be easily sold • Nature of Market: In a consumer market longer
through intermediaries. channels are used whereas in industrial market
Perishable Vs Non - perishable products shorter channels are preferred.
Perishable products like fruits, vegetables and • Size of the market: In case the number of buyers
dairy products are best sold through short is small , shorter channels are used. But indirect
channels. While non-perishable products like channels are required when the market consists of
soaps, toothpaste etc. require longer channels to large number of customers.
reach wide spread consumers. • Geographical situation: If the buyers are
Unit value When unit value of a product is high concentrated in a limited area, direct selling can be
direct channel is effective. Eg: Gold, jewelry, Car used. But widely scattered customers require the
use of middlemen.
etc.. On the other hand less costly product like
cosmetics, detergents, soaps are sold through • Size of order: If the size of order is small, as in
longer channels. the case of most consumers products, large
number of intermediaries may be used. But if size
3- Company related factors: 4- Competitive factors:

The characteristics of the company influences The choice of channel is also affected by the
the choice of distribution channels.
channel selected by competitors in the same
• Financial strength: A company having large
industry. If the competitors have selected a
amount of funds can create its own channel
particular channel, the other firm may also
of distribution. But financially weak
companies will have to depend upon like to select the similar channel. Sometimes,
middlemen. we may avoid the channels used by the
• Desire for control: Companies which want a competitors
tight control over distribution prefer direct
channels. Otherwise, indirect channels may 5. Environment factors:
be used.
• Management: If the management of a firm
has sufficient knowledge and experience of Environmental factors include factors such
distribution, it may prefer direct selling. On as economic condition and legal constraints.
the other hand, firms whose management eg: In a depressed economy, marketers use
has not sufficient knowledge have to depend shorter channels to distribute their goods.
on middlemen.
Supplier
Selection
Presented by:
Iman Fatima
 Supplier Selection
You can Resize without
losing quality
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“Supplier selection is the process by which
Color & firms identify, evaluate, and contract with
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suppliers.”

The supplier selection process deploys an

enormous amount of a firm's financial resources.
Play crucial role for the success of any
FREE organization.
PPT
TEMPLATES
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 Stages of supplier selection
There are 4 stages of supplier selection:
1st stage: Evaluating Offers
Before selecting an offer, assess three key criteria before reaching a decision to award the
contract to a specific supplier: 1:responsiveness, 2:capability, and 3:competitive value.
2nd stage: Operational Capacity Analysis
Analyze suppliers ability to properly schedule orders and keep track of current production
operations.
3rd stage: Technical capability determination
It is key capability to evaluate suppliers technology and technical ability. Means that supplier
has necessary equipment's, tools and taken to meet requirement
4th stage: Financial analysis:
Financial performance analysis has become a very important. Financial ratios help to select a
qualified supplier.
 Key Factors
Following are the main key factors for selecting the supplier:

1. Price
2. Quality
3. Reliability.
4. Communication.
5. Financially stable.
6. Capacity.
7. Payment terms
How many suppliers do you need?

• It's well worth examining how many suppliers you really need..

• However, it's important to have a choice of supply sources and carefully

weigh up the advantages and disadvantages of single or multiple supplier
strategy
 Importance

• The process of supplier selection can be helpful for companies to have

a clear understanding of the concept in order to improve their success
and competitiveness.
• The results show that the application of a structured decision-making
technique is vital, especially under the complex conditions that include
both qualitative and quantitative criteria.
Purchasing
Management
Presented by:
Mahnoor Gul
 Purchasing Management
You can Resize without “Purchasing Management is a department in an
losing quality
organization responsible for purchasing activities.
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Color & Purchase is most important function in an
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organization. Purchase management decides
profitability of the company. “

The purchasing Management department ensures

that all goods, supplies and inventory needed to operate the
FREE business are ordered and kept in stock. It is also
PPT responsible for controlling the cost of the goods ordered,
TEMPLATES controlling inventory levels and building strong relationship
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Objective of Purchasing Equipment
• To keep department expenses low.
• Development f good & new suppliers.
• Development of good relation with the existing suppliers.
• Training and development of personal employes in department.
• To maintain proper and up to date records of all transactions.
• Participating in development of new material and products.
• To contribute in product improvement.
• To avoid stock out situations.
• To develop policies and procedure.
 Functions of Purchasing Management
There are Following Five functions of Purchasing Management :-
1. Receive Purchase Request :- Starting point of purchasing activity. It is the Statement of
Requirement of Production.
2. Review and Evaluate Requisitions :- Purchase department reviews the following i.e.
Item description, Quantity, Estimated purchase prize or last purchased prize

3. Supplier Selection :- Deciding on the mode of purchasing. Invitation to

tender is issued

4.Scrutiny of Offers :- Reply of a supplier to the Invitation to tender

is called an offer. An offer is scrutinized for specifications, prize and
other terms and conditions

5. Order Placement :- Purchasing department selects the supplier and

places order.
Method of Purchasing Management
Equipment
Selection in local
Restaurant Presented by:
Ayesha Sajjad
 Food Service Equipment
You can Resize without
losing quality “Food service equipment includes all the
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Color & machines, tools, and supplies needed to
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meet the demands of customers and fulfill
the future needs.”

The storage, preparation and service of food

and beverages in the food service areas involves
FREE understanding how to source, maintain and
PPT operate various pieces of small and large food and
TEMPLATES beverage equipment
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 Equipment Classification
• Fixed- furniture, ceiling, walls
• Mobile- trolleys and carrying station
• Circulating- linen, glassware, chinaware

• Hand operated- whisks, peelers, slicers.

• Semi-automated- fryers, beaters.
• Fully-automated- equipment with timers
and thermostatic controls such as ovens,
food processors
 Purpose Classification

1. Receiving and measuring equipment Eg: Trolley and weighing scale.

2. Storage equipment Eg: Refrigerator, freezer, racks and shelves.
3. Pre-Preparation equipment Eg: Dough making machine, mixer/grinder.
4. Production equipment Eg: Range, Steamers and Boilers.
5. Holding and serving equipment Eg: Bain-marie, chafing dish, hot cases.
6. Washing equipment Eg: Sink, dish washer.
7. Garbage equipment: Eg: Garbage bins, incinerator.
 Design And Purchasing Factors

The selection of equipment depends upon the following

factors,
oThe type of customers
oSite or location of the establishment
oThe layout of service area
oThe budgeting and funding
oThe type of services offered
Furniture
• Furniture purchasing is done
according to the restaurant type and
funds.
• Type of furniture- metal, PVC, plastic,
wooden, etc.
• What furniture is needed- chairs,
tables, trolleys
 Glassware:
Drinking glasses- goblets,
juice glasses, tumblers, footed
ware, mugs, etc.
 Tableware .

Cutlery, hollowware, flatware,

basic crockery, chinaware.
 Linen:
Table cloths, napkins, slip
cloth, waiters cloth, wiping
cloth.
Step for Equipment selection
 Process
• First step is that need has been clearly identified.
• The second step in selecting and purchasing food-processing equipment is
to define the requirement. What will satisfy the need? This step requires the
most work but achieves the highest reward.
• A complete definition of your requirement will enable you to effective
communication with potential suppliers.
• The result minimizes confusion between the purchaser and the supplier,
allowing firm bids that eliminate hidden costs.
• Customer dissatisfaction and frequency of equipment returns or retrofits are
reduced.
Conclusion
Presented by:
Noor Ge Chughtai
 Conclusion
You can Resize without
losing quality
Food selection is important in food service
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Color & management
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“Selection of food is very important in running a
food service. Providing food in a manner which is
satisfactory to customer is a challenging task.”

Careful thought, planning and appropriate

FREE decision is very important in selection of food.
Quality food can be selected when standards like
PPT
FSAHFA are followed
TEMPLATES
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 McDonalds Inventory Management
As for any food company, McDonald’s faces challenges when it comes to inventory management. These challenges
consist in demand forecasting so the products are not thrown away as well as controlling the raw materials such as
bread, potatoes, and beef. However, McDonald’s is capable of overcoming those challenges, and here’s how:

•Constant communication between the regional planner and restaurants. Every day, each regional planner
communicates with about 100 restaurants by making conference calls and exchanging emails.
•Reliable inventory management System. McDonald’s inventory is managed by using the stock control system to ensure
constant availability of raw materials.
•Accurate demand forecasting. Regional planners analyze the past performance and work on future sales campaigns,
thus predicting the future demand. They use the stock control charts of their inventory management system to display the
product sales history and generate forecasts for each restaurant.
•Storage and distribution. McDonald’s warehouse management runs with separate areas for dry, refrigerated and
frozen foods. In each area, a specific temperature is maintained so the products are not spoiled because of weather and
climate changes. The same goes for distribution – McDonald’s has the same three distribution channels through which
they efficiently deliver food to restaurants while maintaining the correct product temperature.
The business model innovation driving forces in the food supply chain.
THANK YOU
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