PROCUREMENT MANAGEMENT BEST FINAL REPORT

HOA SEN UNIVERSITY INTERNATIONAL BUSINESS CONTENTS Abstract Chapter 1: Theoretical Background General definitions in purchasing management 1.1 Purchasing management definition 1.2 How to manage purchasing proccess? 1.3 Procurement function in supply chains management 1.4 Effective purchasing strategies 1.5 Strategies in controlling procurement process 10 Chapter 2: Effeciency supply chains in skybar management 11 Introduction to Sapphire Entertainment Co., Ltd 12 Company background 12 Company structure 19 Organization structure 20 Organization chart 20 Business actual situation Analysis of Sapphire Entertainment Co., Ltd 20 Company services business 21 Target customers 22 Possible competitors 22 Chapter 3: Works handling and problem solving in Sapphire Entertainment Co.,Ltd 23 Purchasing work handling 24 1.1 F&B purchasing in charge 24 1.2 Event products purchasing in charge 29 Procurement controlling in concerns 32 Chapter 4: Evaluations and solutions for enhancing procurement procedure in Sapphire Entertainment Co.,Ltd 34 Evaluations for enhancing procurement procedure in Sapphire 34 1.1 Evaluation input of purchasing request 35 1.2 Evaluate storage control 35 1.3 Evaluate delivery control 36 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Solutions for enhancing procurement procedure in Sapphire Entertainment Co.,Ltd 36 2.1 Short term solutions 36 2.2 Long term solutions 37 2.3 Individual solutions advised in business 38 Conclusion 39 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS ABSTRACT Vietnam - an ordinary country, also a beauty signature in Asia together with developing economics, Vietnam is undoubtedly becoming one of the attractive country not only for the culture but also for the economics Since 2010, Vietnam has become well-known for drinking-beer culture From 2014, as announced by the Association of Beer Alcohol - Beverage of Vietnam, the speed of the beer industry has slowed down compared to previous years, yet still increased about 10% The volume of beer consumed in the whole market reached 3.1 billion liters in Vietnam last year and continued to be one of most beer consumption markets in Asia According to market research firm Business Monitor International (BMI), industry sales of beer in Vietnam is expected to grow up to 12% each year over the period 2014-2018 Therefore, recently, model Beer Club with soft style and luxury sky bars with preferable wines were born to meet the needs of the market and become a new storm in Vietnam This kind of business is super profit business in Vietnam yet, has to cope with high risks and overcome many challenges regarding to traditional culture Skybar model was well received because the market has successfully combine two factors "drink" and "fun" If such models of restaurants only meet the demand for "food", beer club and discos are mainly meet the needs of "fun", then skybar business simultaneously meet both demand “drink” and “fun” Due to the demand of entertainment in Vietnam, which encouraged and interested me to accept the opportunity working in Sapphire Entertainment Company Not only support me during internship time, Sapphire Entertainment Company in general and purchasing department in particular have raised me up with soft skills and have been a good workplace for me to apply my knowledge from university into pratical experience Therefore through experienc accumulated in workplace, I individually recognized that pratical experience is a key factor for me to step up to higher position in the future From approaching creative and active working environment, I learned by myself the way to cope with problems and how to resolve it by applying solution for every situation in order improve myself for the future together with building relationships with others people which is consedered important for my future as a freshman HOA SEN UNIVERSITY INTERNATIONAL BUSINESS HOA SEN UNIVERSITY INTERNATIONAL BUSINESS CHAPTER 1: THEORETICAL BACKGROUND General definitions in purchasing management 1.1 Purchasing management brief definition Purchasing activities include collecting or purchasing goods and services This process includes the preparation and review requirements as well as the receipt and payment It generally involves: ( ) Planning to buy, ( ) Determine the criteria, ( ) Research and selection of suppliers, ( ) Value Analysis, ( ) Finance, ( ) To negotiate the price, ( ) Buy, ( ) manage supply contracts, ( ) Inventory control, ( 10 ) Payments and other related functions Procurement process is one of an important part of one corporation strategy, because the ability to purchase raw materials will determine the success or failure of other activities related to supply chains A business can not survive if input prices are higher than purchase sales profits , making the sales of products becomes unrealistic General supply chains involves functions which purchasing raw materials play a leading step: Ø Purchasing materials and components Ø Jump into intermediate products and final products Ø Deliver products to distributors and customers According to the process approach: Purchasing management is the process of planning, organizing, leading and controlling operating purchasing activities of commercial enterprises to reach sales targets HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Purchasing managment is managing by the following those steps such as identifying needs, search and selection of suppliers, monitor and supervise the delivery, evaluate the results of purchasing in order to achieve targets were identified Purchasing process is the process of analysis to reach a purchasing decision with what? of whom, what price? This is a complicated process which is repeatedly as the cycle, it relates to the implication the results of the element analysis in the management and supply chains 1.2 How to manage purchasing proccess Purchasing is significantly complicated coorporation process with the targets that take far away from the traditional definition that originally procurement’s principle function is obtaining products and services in response to the demand of internal company The important targets of procurement are devided into main sections: supply continuity, control sourcing procedure effectively, efficiently, development supply base management, develop targets with internal stakeholders, and develop advanced procurement tactical that help organization targets and goals Enhance a strategic sourcing procedure is controlled by the recognition that strategical sourcing will not be successful in holding a supply base which resultsed in the profits of cooperative relationships and strategic alliances The main steps in the sourcing procedure will be followed: Ø Find out potential suppliers Ø Measure potential suppliers Ø Choose suppliers Ø Intergrate suppliers Ø Build up relationships with suppliers v Find out potential suppliers The Internet function has increased significantly the ability and possibility in discovering not only qualified suppliers but also competent suppliers Yet, a purchaser should not neglect others information sources which are already to make sure that the list of suppliers contains the best suitable suppliers such as HOA SEN UNIVERSITY INTERNATIONAL BUSINESS domestic A purchaser should follow a list of sources to keep in update a list of most appropriate suppliers: Suppliers’s websites Detail information of suppliers Catalogues suppliers Trade registers and directories of suppliers Phone directories of supplers Mail advertisements from suppliers Sales personnel Trade shows Other supply management departments Once identified the needs to purchase supplies, staff conduct research suppliers, choosing suppliers For all kinds of materials were used frequently, then further investigation to choose the best supplier For new materials or high value shipments must be studied carefully in order to choose the potential supply v Evaluate potential suppliers After updating potential suppliers list, a purchaser’s next step is to evaluate each supplier independently and individually Evaluation will be varried into standards such as nature, complexity, criticality, and purchasing value The matrix of Peter Kraljic, which was developed in 1983, support purchasers to evaluate types of relationships with suppliers as the standards mentioned above HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Figure 1: Portfolio Matrix Kraljic in 1983 This stage in the strategic sourcing process is most important step because supplier relationship management and supplier performance are tight relationship, together with controling risks, brand, image Purchasing’s relationship with the supplier bases on the classification of the commodity in the matrix The supplier’s strategies must also be followed with the strategies of the buying organization There are key areas mentioned (early supplier involvement, ethical considerations, environmental considerations, and social considerations) need additional consideration with each of the suppliers v Selecting suppliers Until supplier is reduced to a controllable stage and selected supplier has got through the initial measurement procedure, purchaser manager and sourcing group could ask potential suppliers to give out proposals Purchasers need to come up whether to have negotiation, or combination with bidding As listed above, the final decision in selecting of suppliers is depended on a supplier scorecard or weighted factor analysis Enhancing it would included principle factors: • Enhance the elements which play a role as chosen standard serving and the weight that each element hold in making decision Which sectors are vital to your company for this type of commodity or service? For instance paper corporation must HOA SEN UNIVERSITY INTERNATIONAL BUSINESS consider to buy great quantities of starch for its production process, starch plays a principle commodity in regarding to its price • Expand the sub-element or performance elements within the broader selection criteria and the weighting of those elements (inventory, finance, payment…) • Establish a ranking factor to measure who are the potential suppliers This is the standard scale used for measurement: through 5, for instance • Rank and measure each supplier in the list This step should be done personally by those who hold a good relationship with suppliers and for those who have access to the information For instance, on-time delivery may not be known by all members, but the person who responsible will rate the supplier Considering evaluation the suppliers by using the scorecard allows the appropriate chosen of the supplier which definitely supports the demands of buying company It is possible that the highest number is not the best supplier due to the most priority factor is matters (such as quality) v Enhancing suppliers Supplier enhancement is an activity overtaken by a customer to develop a supplier’s performance or capabilities to meet the buyer’s short- and long-term supply needs There would be confliction between the buyer corporation and the supplying firm, specially when a supplying firm does not see the need for Also, it is critical for purchasers to have a defined set of performance metrics that are transparent to the supplier and established goals for development Appropriate and effective supplier enhancement would require a commitment of finance condition and personal skills, precise detail sharing information, and developed procedure v Managing suppliers Metrics keys play a role is to help control suppliers Yet, purchasers must measure the supplier’s capabilities to reach the company’s long-term requrement The purchasers must question suppliers about general growth plans, design capabilities, and future HOA SEN UNIVERSITY INTERNATIONAL BUSINESS production capacity Avital process of controlling the supplier is building and keeping the suitable relationship 1.3 Procurement function in supply chain management Procurement proccess As the process relating to the procurement of raw materials, goods in plan to provide the needs of production or sales Purchasing department plays an important role, which is the chain link between the company and the market offers A purchasing department was rated strongly as it could find goods cheaper raw materials, quality; to ensure adequate supply of raw materials for subsequent processes and build good relationships with suppliers Sourcing function is analyzed into three processes: A Find supplies for production inventory: Demand for unforeseen products should be stored at very large oscillations, the plant was forced to increase reserves to deal with unexpected orders Purchasing department often struggled to establish long-term relationships with suppliers and build supplier networks redundant B Find supplies for production according to the order form: anticipated demand, purchasing department easy to build long-term relationships with suppliers, help them to set up according to the required standards Purchasing department selection and allocation of orders for different vendors according to ability and their prices C Sourcing provides design form of orders: require rich source of raw materials and suppliers, subcontractors must have the capability to design really Value of products demonstrated by the idea, design and implementation of their way Purchasing department build broad relationships with suppliers to meet the diverse needs of the product Collaborative process development of new products to help companies shortten the gap between them and to help detect potential suppliers 1.4 Effective purchasing strategies Appropriate strategies in purchasing procedure would envolve: 10 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Figure 3: Wine purchasing order form Figure 4: Spirit purchasing order form The purchasing request should be clearly categorized into many collums but must included primary elements: Categories, item name, supplier (if any), order quantity, stand by stocks and actual receive • Categorizes column: a purchasing executive could fully group items in ordering precisely, for example: White wine, red wine, cabernet sauvignon… 27 HOA SEN UNIVERSITY • INTERNATIONAL BUSINESS Item name: detail name of item needed to purchase Because wine names are sometimes easily to be confused, a purchaser has to ensure the purchase order is correct before sending to suppliers If a purchaser sends wrong order, it would lead to increasing costs which is higher than an original supplier A purchasing executive needs to some actions to solve problem before that delivery arrived • Supplier: this is a collumn in purchasing request which helps purchasing department easily to group items in order to send order to the right suppliers • Order quantity: this is the key element in the purchasing request With the quantity, purchasing executives would not only know the quantity to order but also compare with stand by stock to know the urgent of each items Photo 15: F&B purchase request 28 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Purchasing process: Order request received (daily/weekly) Source appropriate suppliers Service Send order list to suppliers Storage Receiving Chart 1: Food & Beverage purchasing process Purchasing process in pratical: Chart represents the process of food & beverage in purchasing, with steps in general When receiving purchasing order daily/weekly, a purchasing executive would identify which item belongs to which supplier in order to achieve keys elements in purchasing process After grouping items in purchase order, we would evaluate our food and beverage suppliers Go through the suppliers invoices and current inventory state to determine if we are getting good pricing compared to other competitors After having all good price from suppliers, we choose one offering best price with best quality and good delivery service to send order The step choosing supplier within a group of suppliers would be cut out if it is a daily product With daily products, we will sign contract with one supplier for easier purchasing process Monitor inventory is also important in procurement precedure Review inventory values to confirm they are up to date and conduct an inventory check weekly or monthly so we would be able to ensure a proper level and make cash flow available We would try to avoid waiting until the end of the month to find out if there is any issues because business in restaurant and entertainment is complicated and sensitive therefore everything needs to be controlled in the right way 29 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS v Event products purchasing For every Event booking in Glow Sky bar, a check list should be given out to purchasing department within days before events so that a purchaser has enough of time to proceed purchasing process In Event purchasing process, a requester would give out general item boxes, each of box would have many items to proceed production Requesters for Event products normally are marketers, salesman, or designers Lead time to implement the whole purchasing process including looking for suppliers, checking quotation, compare cost and confirmation will be 1-3 days depends on which items Event items included: Ø Production items (backdrops, posters, hangers, standees, logo, LED production…) Ø Sound & Light (parleds, CDJs, DJMs, sound systems, confetti canon, stage performance, …) Ø Costume for performance (each event would have different design requested) Ø Décor items (flowers, carpets, special event items such as wine bottles, …) Ø Instrument items (pianos, violins, drums, …) Here is the example for an event checklist before Event date: Photo 16: Event checklist After checking all Event items for purchasing, a purchaser will the important step is looking for suppliers With production items and sound & light items always have 30 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS suppliers for sending quotation, others items would have to find suppliers in purchasing After having suppliers in the list, we would send the request detail to each supplier separately and get the quotation with precise information With the quotation from each supplier, we would choose best supplier for each item then confirm the quotation with the supplier and inform requester managers the quotation to get approval from them Once receiving the approval from requester managers, proceed implementation all items However, with items need more time to proceed production, final decision could be made by a purchaser When requesters finish to request all of items in the checklist, requesters would a step: filling in Event purchasing form in order to send to purchasing department to fulfill the form with final quotation and to be as a sign not receive any more purchasing items owing to limitation of time before Event date Here is the purchasing request for Moet Event in practical: Photo 17: Event products purchase request 31 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Purchasing process: Requisition Searching/ Sourcing suppliers Payment Proceed implementation Get quotation Choose best supplier Chart 2: Event purchasing process Requisition: When customers book event in Glow sky bar, a requester would identify the list of products which meet customer’s demand to purchase For example, Moet event requester wants to make a photo booth for their customers to take photo during event To this it needs to purchase a production of photo booth as dimension requested Thus, the need to make a purchase of a product photo booth, is identified Searching/Sourcing: When having purchasing list in hand, we would research for suppliers that fit requester’s demand Research various item types which fit the demand along with suppliers in order to identify the best offer at the best price As the example given above, Moet requester was demanding for a photo booth for their customers, research was conducted into which supplier and producer could provide the most beautiful photo booth with the demand requested for the budget price has been given Get quotation: From the list of suppliers from doing research, we will send item list to get quotation from each supplier in order to compare the cost and the ability of each supplier Choosing best supplier: an appropriate supplier is the best supplier that could offer good price with good quality and delivery possibility in requested time together with best method of payment 32 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS Proceed implementation: After confirmation with suppliers for listed purchasing items, supplier would be asked for lead time of producing each item, delivery time and set up/move out time before and after Event In order to set up one event completely and successfully, some items should be tested before event date by requester in case any fault in production Payment: After event, suppliers checks the items of purchasing list one by one in order to fill in the cost which stand out during the event Once filling in complete purchase request list, a requester would go over again and confirm payment to purchaser Purchaser will the request of payment to supplier to end the purchasing process Purchasing controlling concerns (problems): Once menu planning is completed, a purchasing executive’s concern is the next logical step to be addressed In fact, the menu determines the ingredients to be purchased, the variety of products needed, and the relative amounts One of the major objectives of purchasing is to obtain the right quality and quantity of items at the right price from the right supplier The goals are to maintain quality and value, strengthen the establishment's competitive position, and minimize the investment in inventory More than any other basic operating activity, purchasing relates to cost and quality controls In fact, most food service businesses spend 30-50% of their total sales revenue on product ordering Therefore, cost avoidance in purchasing has the potential to translate directly to the operation's bottom line Conversely, the failure to properly control food costs can have a more devastating effect than overspending in most other cost categories It is not surprising that the primary concern of many operators is their food cost As costs increase, this concern grows Rising food costs often force management to reexamine the operation's purchasing needs In addition to the menu, several other factors dictate purchasing needs First, the forecasted sales volume is an estimate of how much business there will be in the facility on a given day The operation's standardized recipes can be used to work backward from the number of servings to the amounts of ingredients needed If there is a weight 33 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS loss during processing (as when ribs of beef are roasted), the raw ingredient amounts must be increased accordingly Certain external factors also affect purchasing needs The size and frequency of orders is affected by how much lead time the supplier requires before a delivery can be made Also, the facility's location relative to the supplier may affect quantities purchased For example, a steakhouse located high in the mountains or in a rural area probably receives less frequent deliveries than a steakhouse in a downtown metropolitan area Since the steakhouse located downtown obtains more frequent deliveries, the quantities ordered at any given time tend to be smaller Assuming the two steakhouses the same amount of business, the steakhouse in the metropolitan area will have less money tied up in inventory The factors affecting purchasing needs are directly related to the functions of the purchasing control point The purchasing functions are: • Establishing and maintaining an adequate supply of food and nonfood products • Minimizing the operation's investment in inventory • Maintaining the operation's quality, sanitation, and cost standards • Maintaining the operation's competitive position • Buying the product, not the deal Each of these objectives of purchasing will be discussed as they relate to the four resources: personnel, equipment, inventory, and facilities 34 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS CHAPTER 4: VALUATION & SOLUTION FOR ENHANCING PURCHASING PROCESS IN SAPPHIRE CORPORATION General evaluation of procurement process in Sapphire corporation Ø Evaluate input of purchasing process in Sapphire The process of purchasing F&B of Sapphire Entertainment corporation is relatively reasonable, purchase the correct amount according to requester orders but also takes time to synthesize the amount of products to be purchased by going through many parts In order to achieve best procurement process, Sapphire’s purchasing always has to be sensitive and logical in choosing best supplier with best purchasing methods have lower price than the market price in F&B, moreover it is unable to control and predict the price in market especially in food, so we just control partly but also some typical F&B products need to be controlled through the quality and quantity control through suppliers in daily request orders Process F&B is complicated and also takes time to identify other sources of food monthly in order to get market price and choose the best supplier which offer better price than other suppliers However, Sapphire’s purchasing process failed to meet the delivery needs sometimes lose amount of quantity in small amount yet, in total will become big amount that waste huge amount of spending Also, still dependable in some exclusive suppliers which provided unique products, we could not get better price but only depend on that suppliers such as wine and spirit suppliers The process of purchasing event marketing in Sapphire Entertainment corporation is considered to be thoroughly and completely fulfill demand of customers even VIP customers With small event such as birthday party and celebration, the amount of item in purchasing list is not as much as important event therefore customer fulfill percentage is higher Owing to many items in purchasing request together with high demand of VIP customers, we normally depend totally from one supplier so better price could not be conducted In addition, time limitation is one of the weakness of purchasing department in Sapphire Entertainment corporation Ø Evaluate storage control Cold storage of company with considerable large capacity, good storage conditions, dividing each item storage areas but storage keepers are still be unable to keep all products in good condition of using and still confusing which products belong to 35 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS kitchen, which products belong to bar Due to location in District 1, it is unable to owning big storage enough to keep all products in one purchasin request, therefore, everyday needs to order and arranging storage with FIFO (first in – first out) rule In addition, there be difficulties in inventory resulting inventory trouble in finding products, management of materials originating and planning for procurement activities Ø Evaluate delivery control In purchasing process, contro delivery is considered to be important as it would affect the whole process With F&B, suppliers normally follow rules in delivering products from original vendors to direct restaurant and sky bar Yet, still some new suppliers find it hard to deliver it on time and avoid limited time transport With every order including time of delivery, suppliers should follow to avoid congestion, yet, with suppliers deliver products by trucks, will find it difficult to delivery as time requested Solution to enhance purchasing process in Sapphire corporation v Short-term solution o Evaluate F&B suppliers: Go over and control our supplier invoices and our current storage (inventory) to determine if we are working with good pricing compared to our competitors in order to achieve maximum profit Owing to build relationship with suppliers, we should consider in all meeting with local business suppliers and comparing prices We could compare our own pricing history and get quotation from different suppliers against each other, or we can work with the each supplier in long term so that we could be able to lower our F&B costs yet still accessing the highest quality products and staying ahead of consumer trends without the hassle of the bidding wars o Controling inventory In order to confirm our inventory values are up to date we would review inventory and conduct an inventory check weekly/monthly so that we can ensure a proper level and have some cash flow available Also we would avoid waiting till the end of the month to check out if there are issues or not 36 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS v Long-term solution Ø Building up purchasing department As discussed above in the sector with the role of suppliers are important decisions to the existence of the company Though the procurement process of the company is not completely reasonable, inventory management just responsible procurement of items and should not be able to manage all the procurement of as company size grows So building its own purchasing department is essential When building the Purchasing Department will reduce the burden on business room, they focus more on their tasks and understand better the needs of our customers, expanding the market And the process of procurement of items will be made easier by the process, the department has planned purchasing, forecasting the amount needed to buy, specify the amount to be purchased in each order both resource management origin and quality of raw materials, and is responsible for finding a new supplier if the supplier does not meet current demand But to the Sapphire Entertainment company's management does not want to become cumbersome, the purchasing department should organize administratively Each segment will have a operator, but to operate effectively, there should be close coordination between those responsible for different segments Therefore this purchasing department staff must have the experience, qualifications and understanding of items in purchasing, how to check the quality of quotation, understand the F&B market of Vietnam whether the present time or the future Their purpose is: Ø Integrated actual production and inventory management software from inventory and sales software to predict the amount needed to buy raw materials, procurement planning for company and provide solutions to reduce expenditures purchasing fee It is best to 37 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS purchase additional management software purchasing and materials Ø Responsible for purchasing items from the stage of ordering materials when put on the company Ø Take responsibility for the quality of products in purchased Ø Develop strategy for sustainable supply chain corporation in the future Individual solutions advised in business: The process of receiving food and supplies requires complicated delivery besides taking boxes off a delivery truck Restaurant/skybar operator and managers should implement procedures in place for any employee who handles deliveries Here are suggestions for ways to manage deliveries and other receiving procedures in Glow Skybar & Urban Restaurant: Clear controlling quantity and quality: at the time we receive one order, a purchaser should check in the order and sign in delivery form, or verify that the correct quantity of items were received as well as testing the quality of the incoming product Following these steps: Ø Clarify the quantity Assure that every item we ordered is following in the delivery Comparing the order guide to invoice/receipt and manually check off all items as when we look over the delivery Also, assure that product weights and number of pieces are correct in receiving Ø Ensure quality: Assure all items received are in good quality All refrigerated or frozen items should arrive at the proper temperature, and items should appear damage sign or broken problem However, for one reason or another, food products may arrive unusable When good was received in poor condition, damaged during delivery, for example moldy or rotten, a purchaser should refuse the order products (if any), then contact suppliers instantly to arrange other delivery as following request Ø Check the cost: Make sure the total cost on the invoice is correct The money we spend on food orders and other supplies usually makes up a 38 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS large part of your restaurant expenses, and recording the appropriate amount in your financial records is very important to your overall profits and losses Ø Following up all purchases: following up all purchase invoices will definitely help us stay organized and aware of our spending When we receive our order delivery, we would make a record of all total cost the order invoice on our restaurant profit and loss statement (P&L) We can easily use this data in most of cases such as comparing prices from the past and current This will also help us check and calculate our inventory status and usage status, since we plus the earlies purchased items to those we have on hand to determine our total available inventory Ø Keeping supplies, once we have checked our food for quality and recorded the cost and storage amount in our record files, we will be ready to put away our food and supplies This should be done instantly to make sure that food remains at safe degree and to arrange a kitchen well For perishable foods, which involves dating and appropriately storing the products on storage Ø Keeping sanitary and safe storage areas as maximum Besides, storing all incoming perishables at appropriate temperatures, and ensure that all storage areas are organized and sanitary and away from trash or debris Properly change position all food items Storing all incoming food items behind those that are already in your refrigeration or storage units This process of changing direction of product is known as first-in, first-out (FIFO), which would ensure that the older product is stored close to the front so it would be used before the new items Ensure that storage keepers understand FIFO rotation to ensure that the best food quality and storage procedures in the kitchen 39 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS CONCLUSION Throughout this report I understand that the selection of suppliers in purchasing procedure of one company is a vital point Indeed, the right choice of the supplier will directly affect the cost and profit of the company In addition, it is neccessary to know steps in selecting potential suppliers from the list of suppliers Sapphire corporation continues success by catering to request for their faithful customers table and unique Western cuisines in offering, request for their glow and stylish environment, request for their quality of products, and reasonable price This presents a successful in entertainment business organization by showing the vital of innovation and promotional effort, by emphasizing ask for Glow brand reputation as being outstanding and owning loyal customers who are willing to come back for our products in offering In addition, Sapphire corporation keeps focusing on market segmentation target customers, psychographic, demographic, geographic, and the behavioral of guests This not only enhances the business strength but also maintain durability for success in the past and in the future In applying Western style in menu and interior design, customers from domestic to foreigners are interested in spending their time on entertaining after working In this report, we clearly see that Sapphire Entertainment corporation follows good purchasing process together with right method in choosing potential suppliers and reject suppliers 40 HOA SEN UNIVERSITY INTERNATIONAL BUSINESS REFERENCE The core purchasing strategies; http://www.purchasing-procurementcenter.com/purchasing-strategies.html Ordering/Purchasing; http://jan.ucc.nau.edu/~wlr2/ha442/class/control/purchasing/ Food &beverage control system; https://www.thecaterer.com/articles/300749/food-and-beverage-controlsystems Food and beverage Operation management; http://www.academia.edu/11902269/Food_and_Beverage_Operations_Manage ment Sky bar management; http://www.academia.edu/3067847/Sky_Bar_Management_-_Research_paper Receiving procedures in the restaurant; http://www.foodservicewarehouse.com/blog/receiving-procedures-restaurant/ Quy trình thu mua, quy trình mua hàng chuỗi cung ứng; http://logistics4vn.com/quy-trinh-thu-mua-quy-trinh-mua-hang-trong-motchuoi-cung-ung/ Giải pháp erp ngành thực phẩm; http://www.ictroi.com/giaiphap/erp/giaiphap-erp-cho-nganh-thuc-pham-va-giai-khat-erp-for-food-and-beverage/ Restaurant, business plan; http://www.referenceforbusiness.com/businessplans/Business-Plans-Volume-01/Restaurant-v1.html 10 How to write business plan for Restaurant Business; http://smallbusiness.chron.com/write-business-plan-restaurant-food-business1390.html 11 Thị trường F&B; http://www.brandsvietnam.com/9374-Thi-truong-FB-Lainhu-mo-chuoi-nha-hang 12 Kinh doanh beer club, hội thách thức; http://kinhdoanhnhahang.vn/kinhdoanh-beer-club-co-hoi-va-thach-thuc/ 41 ... building and keeping the suitable relationship 1.3 Procurement function in supply chain management Procurement proccess As the process relating to the procurement of raw materials, goods in plan to... through many parts In order to achieve best procurement process, Sapphire’s purchasing always has to be sensitive and logical in choosing best supplier with best purchasing methods have lower price... company Though the procurement process of the company is not completely reasonable, inventory management just responsible procurement of items and should not be able to manage all the procurement of