How Hotels Can Win the Supply Chain Game
By Anthony Clervi Vice President, UNA Purchasing Solutions | April 10, 2016
Managing supply chain and procurement is one of the best ways a hotelier can increase profits and minimize losses, but it's tough to do it well. A hotel must manage hundreds of SKUs. With so many products to buy, it's challenging to find the best sources. Hotel procurement is further complicated by fragmented operations. Bring together franchisees, owner-operators, and multiple brands under one umbrella, and it can be impossible to keep up with procurement. Without centralized processes, managers and operators are more likely to make multiple small-scale purchases from numerous suppliers, making it difficult for corporate officers to ensure hotels purchase high-quality items at the best prices.
Despite the challenges, the two most expensive costs in a hotel are food and labor. While hotels' options for decreasing labor costs are limited, proper supply chain management can significantly drop food costs. But to win the supply chain game, hotel procurement personnel must first know how to identify an ideal supplier.
What Qualities do Strong Suppliers Share?
Hotels managing their own procurement must work with dozens of suppliers, and there are hundreds of companies in each space. How can hotel brands know which supplier is going to deliver the best service at the lowest price? To vet a potential supplier, consider these five factors:
We often assume "local" items are more expensive than their far-traveled counterparts, but that's not really the case. When you factor in freight and shipping costs, ordering from distant suppliers can be costly.
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