Guest columnist, Geoffrey Sagrans, is the assistant director of materials management for the Breakers Palm Beach. He is also a Chef Instructor at the Florida Culinary Institute. Here he talks about how to keep your vendors honest.

The receiving clerk, or another appointed person, must verify the distributor is sending the correct quantity and quality of product ordered. This step is probably the most neglected in the cost control process for many reasons (i.e., time of delivery, focus on other duties, lack of training, etc.).

Each semester we give a lecture at our property to a local culinary school. The students are amazed by the number of things a receiver must be aware of. Anecdotes of stuffing fish with weights, putting poor quality product on the bottom of the box, and sending lesser qualities may be entertaining, however, they end up costing operations significant sums of money each year. We explain to the students that the great majority of vendors and distributors are honest. We try to emphasize that diligence keeps those distributors, who may deviate from this, honest. In fact, a philosophy I preach is building a long-term partnership with distributors. The receiving process is your first line of defense to ensure that the proper product comes in the door.

When deliveries arrive at the receiving dock the receiver compares the purchase order with the invoice and actual items. The receiver looks at the PO to make sure the items arrive as outlined by the purchasing agent. The receiver then looks at the distributor’s invoice to make sure the distributor is charging the property for the items they are delivering.

We believe most are good-intentioned, however, there are exceptions. Here are things receiving clerks must be aware of when accepting deliveries. If a distributor knows your operation is diligent in the receiving process, this ensures you are helping keep the process honest.

• Don’t be bullied by the distributor’s delivery person. In most cases they are assigned a number of stops. They have a tight schedule and do what is necessary to stick to it. Drivers sometimes rush receiving clerks due to the delivery of the wrong items, unapproved substitutions, shorted items, and other reasons. Remember, you are buying from them.



• Know what you have ordered. In larger operations, receiving clerks review a worksheet to know what to expect with the delivery. If you work in a smaller operation, you should have a general idea of what the vendor is delivering. At the very least you would know your “shorts.” At the extreme, you would not sign for thousands of dollars worth of product that was not ordered. Occassionally distributors are known for “back-door selling.” This is when the vendor cold-calls someone in the organization not typically responsible for ordering items and gets them to agree to a purchase without going through designated channels.



• If you do not know what you are receiving, you better know someone who does. I can’t tell you how many times I have seen organizations pay for Prime meats and receive Choice meats. Center-of-the-plate items like beef can break your food cost relatively quickly. If you pay a few hundred dollars per pound for Russian Sturgeon Sevruga Caviar you need to know you are not being sent a Paddlefish Caviar. I subscribe to the 80/20 rule. While you can’t be an expert in all areas, you should have a fundamental knowledge of the areas in which your primary purchases go.



• Don’t take the driver’s word for it. If I am a receiver and am signing for high-dollar deliveries, rest assured I want to see what I am signing for. Too often, receiving people let the driver tell them what is there. Most make good on their deliveries. However, how much does this help if you don’t realize this until 7 P.M. on a Friday night?



• Scrutinize the delivery quality. Unscrupulous distributors can be tempted by the fact that receivers may glance over deliveries. Good receiving personnel are not afraid to get their hands dirty. With produce, the delivery is as good as the weakest link. Know that the weakest link is sitting at the bottom of the case. When we order a Prime beef product we expect it to contain adequate marbling consistent with its grade. Some distributors may jump on the opportunity to make substitutions if unnoticed, and Prime beef is expensive, so it’s important to double check. Good receivers also check expiration dates. If you accept a product with a short shelf date you have essentially signed for product that will be thrown out by the production team. Topnotch operations have a guide for receiving personnel. These specifications outline exactly what the operation expects. For receiving personnel this is a valuable source in instances that the driver and/or vendor have any requisitions on the delivery.



• Scrutinize the delivery quantity. This is as simple as it gets … we only want to pay for what we were sent. It is not unknown to pack fish with ice (and even lead weights aren’t unheard of!) to add to the cost. To put this into proper English, “fish ain’t cheap.” Remember we are paying for the fish and not the ice. For some, the shiny metallic thing at the receiving dock is a shelf used to store boxes. For receiving clerks diligent in the process, this shiny thing is called a scale. Never underestimate your driver’s ability to observe. If unscrupulous distributors and/or drivers know you do not verify weights, you expose your operation to the possibility of dishonesty.



• Take ownership of the receiving dock. Good receiving clerks are masters of orchestrating the flow of delivery traffic at the receiving dock. Taking ownership also means not allowing the driver to dictate their own delivery methods. For example, some drivers may decide to unload in a specific area conducive to them. However, it may not be conducive for you.



• Get it right. Doing the receiving right the first time saves time for everyone involved in the process (i.e, the end users, buyers, and accounting team). Receiving clerks get pressured to get things in fast. Good receiving clerks know that by doing it right the first time they save themselves extra work in the long run.



• Get multiple people involved in the receiving process. This goes back to the buzzword we have all heard, “Best Practices.” In the case of the transfer of goods (a.k.a. assets) it is always a good idea to have multiple people involved in the process.



• Avoid C.O.D. deliveries where possible. Cash equals temptation, enough said.