Term
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Definition
| Procurement-is the entire process of the orderly, systematic exchange between a seller and a buyer. It is the process of obtaining goods and services |
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Term
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Definition
Determining types of products needed
Making purchases
Receiving and storing shipments
Administering purchase contracts |
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Term
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Definition
| is obtaining products and services of a desired quality at a desired price |
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Term
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Definition
| the process by which products and services are chosen based on quality and cost. |
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Term
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Definition
Restaurants
Social Caterers
Convenience Stores
Country Club Restaurants
Hotel and Resort Restaurants
Cruise Ship Dining
Transportation Food Service
Sporting Event Food Service |
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Term
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Definition
114.7 billion, increase 4.4% since 1999
25-34-55% say quick service is a priority
More self-service items-ordering, drinks
Take out 78% once a month
Full Service: more options
Social Caterer 3.6 billion, increase 5.7% |
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Term
| Non-Commercial Operations |
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Definition
Military
Correctional Facilities
Schools, Colleges and Universities
Business and Industry
Healthcare |
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Term
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Definition
Military: 1.3 billion, increase 1.9% since 1999
Business and Industry: 9.1 billion, increase 0.9%, 89% contract
Education 18.3 billion |
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Term
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Definition
Independent Operations (Self-Op)
Multi-units and franchises
Management companies |
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Term
| Product and Service Categories |
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Definition
Food
Beverages
Supplies
Equipment
Support Services
Utilities |
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Term
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Definition
Ultimate Buyer-For personal use
Industrial Buyer
Director (Profit)
Executive Chef (Quality)
Clinical Manager (Nutrition) |
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Term
| Who Are the Decision Makers? |
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Definition
Patron-guest, inmate, patient or student
Service-frontline, food service associate, wait staff, nursing
Production, Chefs, cooks
Buyer-availability, places orders
Management-Budget, labor, quality standards |
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Term
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Definition
The Patron
The Inner Sphere
The Outer Sphere |
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Term
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Definition
Type of establishment
Ethnic/Religious/Regional
Age |
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Term
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Definition
Amounts
Quality
Policies and Procedures
Specifications |
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Term
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Definition
The Market Place
Marketing Agencies
Supply and Demand |
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Term
| What factors in the inner sphere may make it difficult to please the patrons? |
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Definition
Cost
Facility Limitation
Personnel
Outer Sphere:
Short supply
Purchasing agreements |
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Term
| Purchasing Responsibility (independent) |
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Definition
Small:Owner-manager acts as buyer for the operation
Medium:Owner-manager coordinates the purchases of department heads
Large:Generally employ a full-time buyer |
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Term
| Purchasing Responsibility (multi units) |
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Definition
Vice-president of purchasing
Centralized distribution warehouses
Local managers may purchase some items from locally owned operations |
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Term
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Definition
Prices set
Quality standards determined
Sales of product were analyzed
Chicago: meat, grain
New York: coffee |
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Term
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Definition
Physical functional units of the market system
They accept or produce and distribute to local markets |
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Term
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Definition
Receive goods from secondary markets and act as distributors for the customer
Large organizations may skip the local markets and buy directly from the primary or secondary markets |
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Term
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Definition
Exchange of commodities
Buying, selling, merchandising, and price setting
Exchange of information
Market conditions, new technology and new products
Physical supply functions
Financial procedures |
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Term
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Definition
Growers/Producers
Manufacturers or Processors
Distributors
Wholesalers, Brokers and Manufacturer’s Rep
Suppliers
Customers |
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Term
| market distriubution real world ex |
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Definition
Producers-generally farmers or ranchers, produce raw food to sell 1940 one farmer for 12 people
Today one farmer for 80 people
Processors:larger operations may buy directly from producer and send product to a processor
Distributors: transfer food from processor to supplier
broad line wholesalers
specialty wholesalers
Large operations will set up own wholesale operation
Wholesale Clubs
Suppliers |
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Term
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Definition
Growers
Manufacturers-controls the production of an item from raw materials
Processors and fabricators-takes one or more foods and assembles into a new end product |
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Term
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Definition
Commission men and brokers-Neither buy or sell, they represent one or more sources. They usually represent sources that do not employ their own sales force.
Jobbers-They function much like brokers but do may own the items they transfer through the market distribution system. |
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Term
| Manufacturer’s representatives (intermediaries) |
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Definition
| They also function like brokers but may also provide end-user services and may demo products, carry stock and even deliver product. |
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Term
| Wholesalers and distributors (intermed.) |
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Definition
Take possession of the goods they sell and warehouse and deliver them.
Specialty Distributors-Epicurean Foods
Full-Line and Broad-line Distributors-US Foodservice |
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Term
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Definition
Wholesale Clubs-”cash and carry” operations may be opened as store-fronts on distributors
Buying Clubs-collective purchasing of bulk purchases and shared by independent purchasers |
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Term
| Alcoholic Beverage Distribution |
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Definition
Sources
Brewers
Provide fermented beverages made primarily from grains
Winemakers
Provide fermented beverages made primarily from grapes
Distillers
Provide beverage alcohol that has undergone distillation
Intermediaries
Importers and Wholesalers
Distributors
Alcohol Beverage Commissions
Control or License States
Department of Liquor Licenses and Controls |
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Term
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Definition
Manufacturer
Brokers
Distributors and Dealers
Leasing Companies |
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Term
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Definition
Place Value
Costs of getting product to the desired location
Time Value
Storage of product and inventory costs
Cost of credit |
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Term
| Why Develop Specifications? |
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Definition
Quality control standards
Avoid misunderstandings
Allow for turnover of buyers
Training devices for assistant buyers
Necessary for bid procedures |
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Term
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Definition
| Specification: a statement of all the characteristics a product must have to fill a purchase need. They should include all pertinent information but be as short as possible |
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Term
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Definition
Simple but exact
Terminology used in the marketplace
Reasonable in its tolerances
Capable of being met by several bidders
Clear and understandable |
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Term
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Definition
Detail the characteristics that an item must possess to meet your requirements
May describe the manufacturing process
Can be too restrictive and cost prohibitive |
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Term
| Performance Specifications |
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Definition
Describe the required performance requirements
Encourage innovation and ingenuity
Can contain both design and performance features |
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Term
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Definition
Brand name specifications are not acceptable because:
Lessens objectivity
Competition may be eliminated
Use more than one acceptable brand |
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Term
| Individual Specifications |
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Definition
Item’s Name
Government names
Institutional Meat Purchase Specifications (IMPS)
Trade names
Can sizes
Industry standards
Universal Product Code (12 numbers with product and producer)
Quantity Desired
Form and amount
Quality Desired
Brands
Grading-Agricultural Marketing Act
“the grade of the item named in the specification should be that upon delivery”
Form
Count per can
Size of the fruit
Packaging of the product
Unit
Case, sack, barrel, box |
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Term
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Definition
National Testing Labs
NSF, UL, AGA
Utility Requirements
Plumbing Requirements
Steam Requirements
Mechanical Requirements
Space Requirements
Freight and Delivery
Installation
Service Agreements
Special Instructions |
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Term
| Who Writes the Specifications |
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Definition
Company Personnel
Industry Publications
USDA Acceptance Service
Buyer
Supplier |
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Term
| Writing Quality Standards |
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Definition
USDA
USDC
FDA
National Livestock and Meat Board
Foodservice Equipment Distributors
Produce Marketing Association |
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Term
| Issues With Specifications |
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Definition
Setting stringent business factors could adversely effect pricing
Inadvertent discrimination
Quality standards may be difficult to obtain
Grades alone do not cover the required quality standard
Need regular revision
Receiving agents need to understand specifications and monitor compliance. |
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Term
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Definition
Federal government
Packer’s Brand
AP to EP
Samples
Endorsements |
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Term
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Definition
Half and Half
U.S. Grade A
3/8 ounce portion, single-serve
400 servings per case
Loose pack
Moisture proof carton
Refrigerated |
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Term
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Definition
Sound
Smell
Taste
Temperature
Motion |
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Term
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Definition
Entryway
Dining Room
Distance to bar/kitchen/warewashing
Table sizes
Discreet dining or “see and be seen”
Restroom facilities
Clean and attractive
Handle customer load |
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Term
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Definition
Waiting area
The front bar
Avoid straight line
Allow 2 feet of linear space
The back bar
The under bar |
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Term
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Definition
Booth-intimacy
Table-see and be seen
Test out a variety of chairs
Tables-legroom
Wobble |
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Term
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Definition
Table top
Dishware
Glassware
Flatware
Linen
Single service
Source reduction
Quality level
Cost
Takeout packaging |
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Term
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Definition
Cost-This is not a one-time cost; it is an on-going expense
Availability-open stock
Durability-safety issue |
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Term
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Definition
Decorative component
Perceived value
Shapes
Tumbler (cylindrical)
Stemware
Footed glass
Mug
Breakage
Mechanical impact
Thermal shock-thicker glasses need more time to reach room temperature
Keep enough inventory
Separate from plate ware and flatware
Watch temperatures
Pyramiding
No bouquet style holding |
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Term
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Definition
Order more inventory than you need
Readily available for years to come
Test before purchasing
Limit number of pieces |
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Term
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Definition
Cost
Loss record
Number of pieces
Quality
Holds up to pressure
Design and pattern that matches theme
More ornate designs hide scratches better
Don’t mix manufacturer’s |
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Term
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Definition
Weight
Silver plate
Hollowware
Stainless steel
18/8 18% chrome, 8 percent nickel and 74% steel 18/10 is more expensive
410 and 430 which is less expensive |
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Term
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Definition
Fashion
Budget
Environment
Tactile Sensations
Lifestyle
Menu
Technology |
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Term
| Linens and Table Coverings |
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Definition
White, red, hunter green, royal blue and rose petal pink
Cotton
Inexpensive
Durable and absorbent
Shrinks and stains easily |
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Term
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Definition
Buy or lease
Colorfast
Stain release
Minimal shrinkage
Lack of lint |
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Term
| Back of the House Supplies |
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Definition
Kitchen supplies
Smallwares
Knives
Office supplies
Cleaning supplies
Tools
Chemicals
OSHA |
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Term
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Definition
Projected Use
Now/Future
Versatility
Compactness
Compatibility
Appearance
Portability
Energy Source and Efficiency
Brand Names
Availability of Replacement Parts
Supplier Services
Employee Skill Level
Payment Terms
Ease of Use
Ease of Cleaning
Ease of Maintenance |
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Term
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Definition
Instructions to bidders
When, where and how of bid procedures
General conditions
Code requirements
Local ordinances
Delays |
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Term
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Definition
New Equipment
Major capital expense
Financing
Can develop a specification
Customize
Warranty/Maintenance
Newest products |
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Term
| Purchasing Methods (used) |
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Definition
Used Equipment
No financing
As/Is No warranty
Cannot be ordered to specifications
May have been replaced because unreliable or newer, better equipment on the market
Damaged in moving
Use a reputable dealer |
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Term
| Purchasing Methods (leased) |
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Definition
Leased Equipment
Compensate for inadequate funds
Don’t shop around too much
Deal with reputable suppliers
Read the lease before signing
Length of lease
Dollar amount
Deposit
Maintenance |
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Term
| Purchasing Methods (other) |
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Definition
Direct Purchase
Lower AP cost but costs of transport or installation may increase. Servicing agreements may not be valid
Demonstration Models
Equipment programs
Linked to the use of food/beverage products
Custom Equipment |
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Term
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Definition
NSF International
Underwriters Laboratories
American Gas Association
Canadian Standards Association |
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Term
| Sources of Equipment Information |
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Definition
Manufacturer’s Catalogs
Websites
Distributors
Manufacturer’s Representatives |
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Term
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Definition
Outsourcing/Integrated Services
70% of companies outsource at least one service
Request for Proposal
Specification
Timeline
Meetings
Bid for work
Analysis of contract |
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Term
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Definition
Pick up time
How often
How much
Type of removal
Grease
recycling
Maintenance and cleaning of dumpsters
Reduction methods |
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Term
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Definition
Insured and bonded
On time
Armored truck services
Reputable |
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Term
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Definition
Criteria for tress, weed removal etc.
Standard schedule
Emergency service
Rocks, weeds and debris removal
Insurance, licensed and bonded
Courteous |
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Term
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Definition
Frequency
Types of chemicals
what pests to treat
Licensed,insured and bonded
Emergency/scheduled visits
Time pf day
Billing
Treatment area |
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Term
| Decorating and Remodeling |
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Definition
Licensed, bonded and insured
Work done while closed
Registry of contractors
warranty
Timelines
Removal of debris and clean-up
Competitive bids |
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Term
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Definition
% of profits
number of machines
Refill service done
maintenance/reimbursements
water option |
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Term
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Definition
Types
flood
Fire
natural disasters
Worker's comp
Liability |
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Term
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Definition
Maintain to health code standards
Material Safety Data Sheets
Insured
Billing
Completion time |
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Term
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Definition
Types of Suppliers
Broadline Distributors
Carry everything you might need
Full-Line Distributors
Carry food, nonfood, nonalcoholic beverages
Specialty Product Distributors
Carry limited product line
Discount Warehouse |
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Term
| Characteristics of Desirable Suppliers |
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Definition
Quality of service
Quality of product line
Organizational characteristics |
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Term
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Definition
Time between order and delivery
Delivers on time
Condition on arrival
Follows instructions
Number of rejections
Handling of complaints
Technical assistance
Emergency deliveries
Price accuracy
Return policy
Sales representatives |
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Term
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Definition
Grades
Packaging
Uniformity
Specifications |
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Term
| Organizational characteristics |
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Definition
Size or capacity
Financial strength
Technical service
Geographical locations
Labor relations |
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Term
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Definition
Frequency
Location
Time
Emergency
Just-In-Time |
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Term
| Sole,single or Multi-sourcing |
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Definition
Advantages of single-sourcing
Volume
Performance
Scheduling
Communications
Problem solving
Sole sourcing only one approved supplier
Advantages of multi-sourcing
Variety
Pricing |
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Term
| Distributor sales representatives |
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Definition
Distributor sales representatives
Professional
Open communication
Ethical interactions
Respect time of other person
Follow-up |
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Term
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Definition
Win-Win
Emphasis on value
Conceding
Problem-solving
Persuasion |
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Term
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Definition
Minimum order quantities
Contract prices for extended order periods
Delivery times
Payment processing
Procedures for placing and receiving orders
Return of defective products |
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Term
| Successful Negotiation Traits |
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Definition
Excellent communication skills
Speaking
Listening
Organizing Thoughts
Problem-solving
Open to other ideas
Critical thinking skills
spot the logic errors
Identify deceptive information |
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Term
| Negotiation participation |
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Definition
Listen and Probe
Clarify the objectives and issues of the other side
Find out what would allow them to walk away with a win
Propose Solutions
Watch for body language
Be patient |
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Term
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Definition
Identify your highest goal and walk away position
Look for any precedents
Identify deadlines
Establish your strategy and preferred alternatives
Be prepared for the long haul |
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Term
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Definition
Add-ons
Good cop/bad cop
Two poor choices
I must ask my boss
Final offer
Deadline |
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Term
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Definition
Don’t care too much
Do not try to read minds
Do not offend the other side
Do not bring your ego or personal baggage into the room
Do not disclose your deadline or be forced into an arbitrary one
Build your skills |
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