Top Five Reasons to Automate Inventory and Procurement

By Tina Stehle Senior Vice President & General Manager, Agilysys Hospitality Solutions Group | April 15, 2012

The operational benefits of e-procurement are numerous, including reduced inventory levels, improved auditing and financial control, elimination of paperwork, enhanced staff efficiency and shortened delivery time.

Today's systems take inventory and procurement to an entirely new level with automated e-mail bids, budget tracking, electronic invoicing, business intelligence functionality and the ability to route purchase requisitions for approval via e-mail or PDA.

There's no time like the present to ensure your property's success. Following are five top reasons to automate your hotel's inventory and procurement system.

Reason #1: Monetary savings

Automated solutions for inventory and procurement deliver big savings over manual systems - from reduced administrative costs to shortened procurement and fulfillment cycles. Eliminating manual processes, for example, increases staff productivity; and tracking data to secure vendor rebates can result in significant monetary savings.

An automated bid system also drives down the cost of supplies by allowing hotel procurement staff to increase its number of potential vendors and identify preferred suppliers. In large hotels, where purchasing responsibilities are often spread over several departments or even several locations, an automated inventory and procurement solution can maximize buying power by consolidating orders, which typically lowers the cost per transaction and results in deeper volume discounts.

Choose a Social Network!

The social network you are looking for is not available.


Hotel Newswire Headlines Feed  

Coming up in May 2019...

Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.