Dining Procurement

Criticality:   High

Frequency:   Daily

Turnaround:   Next Day

Key Parties / Contacts:

SCL Purchasing:  Responsible for vendor management, product sourcing, issuing requests for proposal and bids, and vendor on-boarding.  Addresses product recalls, daily performance issues of vendors, including on-time delivery, product quality and compliance with Dining standards and requirements.  Reviews any pricing or delivery discrepancies with the FTC as needed.  Notifies vendor and requests credit or on-invoice reduction if invoice does not match the current price file. Sends vendor substitution requests to the CWI team for approval and maintains Vendor Tracking Sheet.  Approves/rejects new item requests as received.  Uploads weekly vendor price updates to FSS. Manages rebate and commissions programs and reviews FSS purchasing reports for variances.  Audits primary food vendor for contract compliance.

Cornell Wellness and Innovation Team (CWI): Set and approve menus, review and approve/reject product substitution and new item requests and adds to FSS.

FSS Data Team:  Adds approved items to FSS and links to appropriate vendor so it is available for addition to ordering templates. Notifies FTC if new items identified during receiving will be added to FSS.

Material Handler:  Create orders in FSS using custom ordering templates and sends to Chef/Manager to approve and submit to vendor.  Receives product at the receiving docks and verifies product and counts to receiving worksheets printed from FSS.  Adjusts invoice as needed for damaged goods or rejected product and codes according to FSS Manual guidelines, signs invoice to indicate reviewed with corrections noted if applicable. 

Chef/Manager:  Submits requests and approved items to replace existing and provides updated recipes. Creates/updates and maintains order templates in FSS based on approved service menus established in conjunction with Nutrition/Culinary Management Team.  Reviews service menus and ordering templates with Material Handlers and production staff.  Prints weekly vendor order worksheets to be used as order guides by Material Handlers.  Reviews/approves orders in FSS and sends electronic PO to vendor.  Uses P Card to make purchases of 1X, specialty, or emergency items.

Operations Manager: Operations Manager is responsible for the accuracy of the financial reporting of each dining Unit.  Review FSS purchasing audit reports to review spend monthly.

Dining Account Rep:  Scans invoices to the FTC for processing and receiving in FSS.

Manager of Finance and Business Performance:  Monitors financial statement activity for fluctuations in any food category and/or unit and investigates discrepancies to understand underlying cause.

Financial Transaction Center (FTC):  Responsible for processing vendor invoices and credits timely. Identifies issues with pricing, quantities or product and raises issue to purchasing team. If new items are identified, notifies FSS group email and awaits CWI approvals.  Runs FSS AP Audit Summary to review all pending invoice transactions and creates voucher file to be sent to KFS for upload.

Vendor:  Fulfills order and ships to unit. Addresses performance issues, non-compliance and product quality concerns raised by SCL Purchasing and/or Cornell Dining.  Submits substitution proposals to SCL Purchasing for review and approval prior to shipping.  Issues samples with approval of CWI team and hosts vendor food shows and events.

Key Risks

Key Controls

Risk of the same individual ordering and receiving product, allowing opportunity for fraud.

1.       All FSS orders are initiated by the Material Handlers but reviewed and approved by the Chef/Manager before the order is issued.  Material Handler receives all product.

2.       FSS has audit reports, including the Purchase Order Tracking Index, Vendor Items Purchases Detail, Descending Usage and other reports available to review spend.  Reports are run weekly or as needed by the Operations Manager and SCL Purchasing.

3.       FTC enters and receives product electronically in the FSS system.  Any items not on the approved orders are flagged to the CWI group or purchasing team.

Risk of new items purchased that have not gone through the proper approvals and nutritional review.

1.       Units are required to get approval for any new items using the New Item form.

2.       What is the consequence if they do not used this form?

Theft of food items from units and storage areas

1.       Access to storage areas and freezers are limited to kitchen staff.

2.       Storage areas and loading docks are secured by Operations Manager when unit is closed.

3.       Security cameras are placed at strategic locations for receiving and kitchens (storage?).

Vendor not complying with pricing agreements

1.       FTC notifies purchasing of any price discrepancies when processing invoices.

2.       Purchasing identifies if unauthorized substitution or pricing violation.

3.       Vendor audited bi-annually to validate price plus agreements.

After the fact PO’s:  Unit purchases non-delegated spend authority without proper process and approvals. Unit may make purchases without going through correct process.

1.       Staff are trained that they cannot order outside of the FSS system.

2.       Only managers can buy using P Cards for emergency or special-order items.

3.       Violations result in P-Card disciplinary actions.

4.       Delegated spend purchases are required to go through the Purchasing Team.

5.       Purchases of items outside of delegated spend are initiated on an IWant documents or through eshop.

Units signing contracts: Risk is increased when contracts are signed by individuals who do not have transaction authority.

1.       Staff are trained that they cannot sign contracts directly.

2.       Only the SCL Procurement team has delegated spend authority for Dining inventory items.

3.       All non-delegated spend goes through and IWant request which is approved by SCL Procurement.

Vendor not in compliance with approved item specifications (unauthorized substitutions).  Allergens could contaminate food supply.

4.       Material Handler should identify unauthorized product, reject it and report to SCL Purchasing.