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10 Things to Optimize Hospitality Procurement

Procurement is critical for the success of any hotel business with efficiency, cost and time savings top of mind for any project at the pre-opening stage.

 

1. Know Your Project and Market
Every hotel is different, even under the same brand, depending on its location and customer profile. Research your project thoroughly and understand your customer expectations – are they coming for business, to relax or to engage in sports and activities? What are the challenges and opportunities for your hotel?

 

2. Set a Clear Timeline
Take account of all work streams when setting your timeline and include detailed milestones for each step of your project.

 

3. Meet your Guest Expectations
Map out all potential category and product requirements for each area of your property and for operational purposes.

4. Talk Honestly About Money
Make a realistic budget based on what your minimum requirements are to furnish your property to its star rating standard.

 

5. Define your Standards of Operation
Make sure your people, process and technology are as efficient as possible by clearly defining how the project will be run, who will be involved, and what tools you require.

 

6. Employ the Right People to Build the Right Culture
Build a team of dedicated category experts that know the market and understand the whole procurement cycle from sourcing, through procuring to fulfilment. The right people will deliver value and react decisively when faced by any challenges.

7. Improve Your Vendor Management
Continue to increase your vendor knowledge, what their supply chain capabilities are and delivery options. This is an ongoing process.

 

8. Stay in Control
Create a robust tracking system that allows you to monitor where you are at every stage of the procurement process – whether requests are out for quotation or items in production. This way you will always maintain a real-time view of the project.

 

9. Reduce Your Risk 
Understand all risks associated with your project such as location, timelines, priorities. So, for example, if your property location is on a remote island you need to factor in delivery challenges, or if you need to better manage your cost analysis due to potential project constraints.

10. Partner with Toggle Hospitality 

Join the world’s first end-to-end hospitality digital procurement platform to reduce your costs and save time with its cognitive sourcing catalogue, a range of procurement project workflow tools, and dedicated solutions that cover fulfilment. In addition, increase your efficiency and sustainability by eliminating paperwork, waste and improving governance and compliance during each step of the procurement process.