The role of supplying in an organization can vary widely, from purchasing interactions to effective supply chain management, customer service and relationship building. Some markets like those in the hospitality supplying industry however, are intrinsically linked with the success of their procurement of supplies at every level.
Hospitality supplying takes up one singular important place. Serving not only to efficiently supply the organization but to provide each supply with the expect product value through optimal quality of goods and service as a branch of customer service. In our growing wireless age, hotels rooted in tradition often find themselves caught up in aggressive competition with those of new, innovative accommodation systems like Airbnb and other similar services. The struggle in cutting cost without sacrificing quality and user experience is at the heart of each company.
In order to get over these and other seemingly daunting problems, it is important to familiarize oneself with these problems and their solutions. Streamlining procurement procedures and maximizing cost while building long lasting memories in the process.
Four Problems Hospitality Suppliers Face Regularly
The hospitality industry, like all entities who participate in buying goods and services, are not immune to problems. They require the most reliable, cost effective solutions to even the most common supplying issues
Little to No Software Integration
A lack of a centralized eProcurement system to help support procurement functions such as procure-to-pay process management can cause even the most seasoned managers to face a huge wave of trouble. Failing to find and integrate an effective e-purchasing software package that delivers the specific needs of your company can manifest in disastrous organizational failure as well as missed opportunities to form cost effective partnerships etc.
Those in the industry that have adapted to a real-time, centralized software system are quick to find that they now possess:
- A transparent view of all interactions which reduce maverick spending
- Access to important analytics which are helpful in planning and supporting supply chain management
- More control over internal and external sources of support for essential services
- A user-friendly interface that streamlines common purchasing activity
- Increased efficiency in document and order processing
Moreover, the benefits of a streamlined system creates an environment that spills over to solutions in other common problems.
A seasonal business like those in hospitality supplying gives way to balancing challenges which concern the demand for a good product or service. Customers regularly demand the best quality of these goods and services. In order to avoid the risk of running out, it is better to spend more and focus on ensuring that customer service stays at the optimal level. On the other hand, stocking up on goods at their cheapest means that you’ve completely wasted your money and time dealing with storage you never planned to use.
In order to properly plan for demand while getting the best prices, it’s important to identify how and when the company uses goods and services, creating a well thought out and adjusted strategy for restocks and renewals.
A more software based solution to this allows for better spending management by providing insights into quarterly and annual trends in customer demands as well as product availability and cashflow. You are now able to make relevant and cost-effective decisions that satisfy business needs without losing value.
Ineffective Relationship Management
Building strong relationships with your suppliers is key in building a successful hospitality business, without them, it’s easy to miss out on special deals, volume pricing and maybe even some exclusive contract that can create powerful value and support for your company’s goal for short and long term. Building this relationship is what turns your vendors into more than just a voice in your phone.
As discussed in one of our own articles, the key to effective relationship management is taking advantage of every opportunity to build trust and bond with your suppliers. A small provision of benefits here and there can grow into a full integration and streamlining of your company’s progress.
Savings Focused Rather Than Value Focused
The key to long term success is in procurement services that are designed to track and take advantage of opportunities to generate long lasting value rather than short term savings. In our current high cost tight budget world, it can be tempting to focus on cutting prices rather than providing value.
Bargains are rarely if ever truly bargains. Several aspects such as sub-par quality, prone to failure and general dissatisfaction proves this and is closely tied to lost customers and nightmarish PR problems.
Ease any and all customer expectations while maximizing value and profits with effective strategies and software that tracks these aspects. This also helps maintain and build vendor relationships that can blossom into new opportunities for savings and long term value.