Course Name

Procurement Practices in the Hospitality Industry


Canceled due to COVID-19 pandemic

Regular Rate:

Php 12,800.00

Early Eagle Rate:

Php 11,800.00

Valid Until:

May 02, 2020

Procurement Practices in the Hospitality Industry


This is a two-day course developed specifically for owner-managers and operators, buyers and purchasing practitioners in the hospitality industry (hotels, hospitals and health centers, schools and universities, resorts and sports club, restaurants and fast-food chains, and the like) to provide a working knowledge of the hospitality industry and acquire the necessary skills and methodologies in the procurement processes involved in the hospitality industry.

Who should attend

Owner-managers and operators, buyers and purchasing practitioners, as well as suppliers in the hospitality industry.

Course Objectives:

  1. Provide a working understanding of the hospitality industry;
  2. Learn to understand the procurement practices in the hospitality industry;
  3. Understand the various types of hospitality operations and how its procurement functions and the organization are managed;
  4. Have a working knowledge in the procurement processes;
    -The optimal amount
    - The optimal price
    - The optimal payment policy
    - The optimal supplier
  5. Define the objectives of storage management and describe the process of managing storage facilities and inventory;
  6. Define and understand the distribution systems in the hospitality industry;
  7. How to evaluate the determination of optimal values and supplier services in the hospitality industry;
  8. Define and understand the factors affecting the distribution systems;
  9. Identify management considerations surrounding the selection and procurement of furniture, fixtures and equipment (FFE);
  10. Define and understand the security problems associated with the procurement function; and
  11. Provide guidelines to prevent security problems related to theft and pilferage.
  • Introduction
    • Overview of the procurement function in the hospitality industry
    • Objectives of the procurement function
    • Types of hospitality operations
    • Typical procurement processes
  • The purchase specifications
    • Why have specifications
    • Who decides what to include in the specifications
    • What information does a specification include
    • Potential problems with specifications
  • The optimal amount
    • How to calculate the correct order quantities and frequency of ordering using various theoretical methods.
    • Define and understand the benefits and problems of using only theoretical methods.
  • The optimal price
    • How purchases influence buyers
    • Describe how suppliers determine their purchase prices
    • Identify methods buyers employ to reduce purchase prices
    • Calculate cost information, including edible portion cost, servable portion cost and standard cost.
    • Evaluate the advantage of an opportunity buy
  • The optimal payment policy
    • Objectives of a payment policy
    • Explain the cost of paying sooner than necessary and of paying too late
    • Compare bill-paying procedures that can be employed by hospitality operators
    • Mechanics of bill payment
  • The optimal supplier
    • Locating sources of supply
    • Sourcing alternative options
    • Understanding buyers’ and suppliers’ market
    • Define the major criteria in supplier selection
  • Ordering procedures
    • Ordering practices in the hospitality industry
    • Explain the use of a purchase requisition
    • Describe the elements of a purchase order and its use
  • Receiving procedures
    • Objectives or receiving
    • Essentials of effective receiving
    • Describe invoice receiving and other receiving functions
    • Understand various receiving practices and methods that reduce receiving costs
  • Storage management procedures
    • Objectives of storage
    • Identify space, temperatures, humidity and other requirements for proper storage.
    • Describe process of managing storage facilities
  • Distribution systems
    •  Define the distribution systems in the hospitality industry
    • Understand the economic values added to products and services as they go through the channel of distribution
    • Evaluate the determination of optimal values and supplier services in the hospitality industry
  • Factors affecting the distribution systems
    • Identify the economic, political, legal and technological forces that affect the channel of distribution
  • Management considerations surrounding the selection and procurement of furniture, fixtures and equipment (FFE)
    • General procedures in FFE procurement
    • Defining FFE specifications
    • Selection factors for FFE
  • Major management considerations in the selection and purchase of services.
    • Types of services that hospitality operators purchase
    • General procedures used when buying services
    • Describe major selection factors for services
  • Video presentation
  • Review test exercises and group exercises

Mr. Ramon R. Guevara, CPM, DSM

has more than 50 years of working experience in purchasing and supply management. He held various managerial and executive positions in the areas of purchasing, inventory management, warehousing, customer service, transportation and logistics operations. He is currently an international lecturer on supply management in Vietnam, Singapore, Malaysia and Hongkong. He is also a lecturer/facilitator and supply management consultant for the Philippine Institute for Supply Management (PISM).

Prior to this, he worked with Filoil Refinery Corporation (now Petron Corporation), San Miguel Corporation, General Motors Corporation, and the U.S. Federal Government. He was also Senior Manager – Materials Management Division of the International Rice Research Institute. Further, he was a management lecturer at Mapua Institute of Technology.  Mr. Guevara is a former President of the Philippine Institute for Supply Management.

He received various awards, such as: Gawad Sinop by the Society of Fellows in Supply Management: and Most Outstanding Purchasing and Materials Management Practitioner of the year by PISM.
Mr. Guevara is a Certified Purchasing Manager (C.P.M.) from the Institute for Supply Management, Michigan, USA. He earned a Masters degree in Business Administration from Mapua Graduate School.

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