Cost Control: Market Survey

Objective ：

1. To perform market survey and compare perishable product prices in local markets and search for alternative and comparable products.

2. To ensure that perishable products supplied are within current market prices and evaluate possible replacement of high cost products by lower cost products without sacrificing quality and guest satisfaction.

3. Any unavailable perishable products will be feedback to the requesting department in order to avoid undue delay in processing of forthcoming functions, i.e. Banquet Event Orders and new Menu items

Procedure ：

Hotel personnel involved in conducting this market survey will be represented as follows:

1. Purchasing Manager/Officer.

2. Cost Controller/Officer.

3. Kitchen Master Chef/Sous Chef as assigned by F&B Director.

4. An appointed management staff for ad hoc periodic verification.

 Record on file procedure

1. The Market Survey Listing will include the below stated details;

1. Date of Survey  

2. Signatures of survey personnel   

3. Product names and unit price 

4. Sizes of products e.g. small, medium, large. 

5. Remarks, if any, fresh products or frozen products or pre-packed.

2. Market Survey Listing will record all prices for each surveyed local market and submitted within the following day to Director of Finance & Business Support office for verification.  

1. Recommendations and comments will be noted on the Market Survey Listing and forward to F&B Director and General Manager for their endorsement.

2. If comments on products prices are cost oriented, purchasing department must take note on the specific products when ordering and liaise with F&B department to substitute high cost product items whenever possible. 

3. Purchasing department will negotiate with relevant perishable products suppliers to establish a “15 days” fixed pricing policy of supplies to the hotel.  This negotiated product prices will only be valid after being approved as per below point C.4.  Product suppliers will endorse on an agreement to vouch for the agreed products pricing.

4. Based on negotiated fixed pricing policy, another Daily Market Perishable Products Prices Summary will be submitted for management approval.  This summary is an extension of the Market Survey Listing indicating negotiated prices of each supplier.  The approval process involves the following executives;           

1. Purchasing Manager – negotiated product prices of agreement suppliers

2. Director of Finance & Business Support &  Asst. DoF&BS – verifying on quoted product prices                  

3. Food and Beverage Director – acknowledgement of quoted product prices

4. General Manager – approving cost of product prices

If there is unanimously agreement on quoted product prices on Summary Listing, this summary will be distributed by Purchasing department as follows;

1. Original copy – retained by Finance department – Cost Control section.

2. Second Copy – retained by Purchasing department for ordering of daily perishable products from agreement supplier.

3. Third Copy – retained as reference for F&B Director office.

Outstanding/Unusual items guidelines 

1. There are situations where out-of-town perishable products are being requested for special Food & Beverage promotion and the use of Purchase Requisition Form policy and procedures will apply without any further local market comparison.

2. Despite of the Daily Market Product Prices Summary being duly approved and fixed for a period of fifteen (15) days, there might be times that certain product prices are fluctuating too much and the need to re-negotiate product prices will be performed before expiry of the “15 days” fixed pricing policy with Executive office’s instructions.

3.  Any last minute ordering of product deliveries does not support incentive payment to suppliers as they are bound as hotel agreement supplier for product deliveries at any moment of time.