This report is about the procurement strategy of Algonquin College for food that will be served in its café and food court. The college is looking for supplier(s) that can provide range of food items at competitive prices and while ensuring good quality. The supplier will be selected through request for quote process whereby the suppliers submit their quotes and the college will select from them based on low price, good previous reviews and good quality of food. The supplier and college should keep benefit of consumer and supplier both in mind and should not cause pollution through food wastage. 1. Introduction The Algonquin College operates a canteen that serves students, staff and the teachers. The procurement of the food items in the canteen …show more content…
Arbulu (2017) states that during the year 2016, there were over 36 million food consumers that generated 397 billion US dollars in retail sales and this food and beverages sales is 17 percent of Canadian retail economy. The competition is very high at supply as well as the consumption side because the suppliers have many consumers and the consumers have many suppliers. The competition in food supply is a benefit for the college because they can bargain with multiple suppliers for supply of food. The college has both the options of packaged food and cooked food like burgers and sandwiches and there are many suppliers of food in both the mentioned categories. The packaged food is sold by local sellers, national level companies and global companies. The processed and packaged food is commonly sold via vending machines in the colleges. The cooked food on the other hand is sold by staff on the canteen …show more content…
Zhao et al. (2015) states that the accounting performance of contractors largely depends upon their bargain powers. If the supplier has higher bargain power, then he can influence the contract by setting higher sales prices for the products that they provide to the college. However, in the food industry, there are many suppliers, so no single supplier can set very high prices. The suppliers have medium bargain power therefore they will set reasonable and competitive prices so that the college gives them the contract for supply of food. The suppliers will always want to achieve higher bargain power so that they can make most money out of fewest number of contracts (Hui et al. 2012), however, it is college’s task to engage with multiple suppliers and choose the one that offers the best bargain to the