Foods are purchased in different ways, by competitive formal or informal bid buying, open market buying, and contract buying.
These techniques are practiced in large business establishments. Sealed bids specifications.
The most commonly used method of food buying is open market buying where price quotations are requested verbally from one or more vendors/ dealers and food is ordered in terms favorable to buyers.
Negotiated buying is the purchase of food items wherein production of which is seasonal, limited or restricted. It is a semi-formal way of buying where rules and regulations are less restricted than competitive bid buying.
In contract buying, food is purchased through an agreed upon contract. Purchase of food is routinary and prices remain about the same over a period of time.