The Best Procurement System in the Restaurant Industry : The Case of La Montana Islamabad

Abstract

The purpose of this project is to study the procurement system of La Montana restaurant and identify their problems by collecting data through observing their systems and operations as a customer’s, by meeting with the management and with their vendors and also interviewing those by using semi- structured interviewing technique. On the basis of initial collected information and reviewing the previous research, reached on this point to suggest a competitive and best procurement system, the study identify two best practices using across the world traditional procurement and electronic procurement systems used by the different industries successfully, La Montana only using traditional procurement system only which was not so effective. This study suggest how the La Montana have to build a database of their current vendors to introduced e-procurement and they can use some email channel like mail-chimp on initial bases to inform their vendors about their purchasing, La Montana can save their time and cost by advertising tenders online, allowing suppliers to submit proposals online, short listing of suppliers online, allowing company staff to make requisition online and call for orders through company website. Although it was hard to convert from one system to other in country like Pakistan where the vendors doesn’t know how to use technology and they have very limited resources. This study recommend the La Montana that due problems they should not completely go on e-procurement they should specified their products specially event management items, crockery items and other items used in the restaurants should be ordered through using e-procurement while daily use items or items with limited shelf life can be ordered through other system.