How to solve the common problems in hotel procurement?

Purchasing plays an extremely important role in the hotel industry. It not only provides efficient services for organizations, but also creates value through the best quality goods and services as a function of customer service. In the digital age, traditional hotels have fallen into fierce competition with new boutique accommodation, and they are trying to reduce costs without sacrificing quality or user experience.

In hotel procurement, from procurement and supply chain management to strategic acquisitions, customer service and relationship building, procurement is closely related to the success of enterprises at almost every level. Hotel procurement professionals often face some formidable challenges, but these challenges are not insurmountable. By understanding these problems and their solutions, hotel procurement staff can simplify the procurement process, save costs to the maximum extent, and create lasting value while maintaining competitiveness.

Four challenges that hotel purchasing departments often face.

Like all entities that buy goods and services in the modern market, the hotel industry is also facing common procurement problems and needs reliable and cost-effective solutions.

First, the integration of e-recruitment software is insufficient or not.

Hotel procurement management includes hotel supplies, furniture, fixtures and equipment (FF&; E) procurement; Process management of hotel operation; Supply chain management and supplier relationship development; Reduce operating costs to support hotel management. If there is no centralized e-procurement system to support these procurement functions, it may lead to the loss or duplication of purchase orders, arbitrary expenditure in all aspects from office supplies to key services, and miss the opportunity to establish a strategic partnership with suppliers to achieve greater cost savings.

On the contrary, those who integrate real-time and centralized e-procurement systems in the hotel industry will soon find that all transactions are completely transparent, effectively reducing or eliminating unusual expenses and obtaining analytical information. The e-procurement system provides the following support for hotel planning and supply chain management:

-Assessing and strengthening supplier relations

-Get better delivery time, the highest quality products and the best price.

-Effective forecasting and planning

-Strengthen control over internal and external basic service support, including business process outsourcing (BPO)

-User-friendly self-service for common procurement activities.

-The efficiency of document and order processing is greatly improved.

Second, poor demand planning.

In seasonal businesses such as services, the challenge of balancing quantity and when to buy goods or services is greatly increased. Because customers want the best goods and services, hotels don't want to spend all their money, so they may spend more money to ensure that customer service will not be affected. On the other hand, if the hotel hoards goods in a more economical but unused way, it has actually completely wasted money (if they are perishable or outdated), or wasted time and manpower to deal with the storage that is not intended to be used.

Hotels can provide key insights into customer needs, product availability and quarterly and annual cash flow trends through e-recruitment software, thus supporting better expenditure management. Hotels can make relevant and cost-effective decisions that meet the actual business needs in time, and save the bottom line to the maximum extent without losing value.

Third, ineffective relationship management.

As a purchaser, are you sure that the supplier is familiar with the business requirements? Or is it just a password, just a voice on the phone or a screen on the internet? Establishing a strong relationship with suppliers is very important for establishing a successful hotel business. Without them, you may miss some special offers, batch pricing or even exclusive contracts, which can not only save money, but also create strong value for the company's short-term and long-term goals.

In an industry defined by healthy and efficient relationships, e-procurement system can more easily collect and utilize data of mutually beneficial relationships in the whole supply chain. Strategic partnership enables us to easily satisfy customers and create value through excellent products, services and customer support.

Fourth, pay attention to economy rather than value.

In a perfect world, the best products and services should be abundant, cheap and free. But in the real world, high cost and tight budget may make people tend to pay attention to the lowest price instead of providing goods and services that customers expect and need. But the key to long-term success lies in purchasing services. The purpose of purchasing services is to track and use opportunities and create real lasting value, not short-term savings.

From furniture, fixtures and equipment to business process outsourcing, so-called "bargains" are rarely bargains, because they may be proved unqualified, break down more often (need to be replaced), and generate dissatisfaction, which leads to customer loss, high-cost public relations problems and minimum profits. E-procurement software is the core of hotel procurement process, which can easily track and meet customers' needs and expectations, and at the same time get the highest possible price for the highest quality goods, especially if the hotel focuses on establishing supplier relationships, thus creating new economic value and long-term opportunities.

8MSaaS SRM: Let E-recruitment Create Value for Hotels

8MSaaS SRM e-procurement system enables hotel enterprises to control and strictly manage the expanding and increasingly complex global supply chain, thus gaining competitive advantage. 8MSaaS SRM can effectively help hotel enterprises to capture, systematically organize and analyze detailed information, and then make better business decisions faster.

Hotel enterprises can use 8MSaaS e-recruitment to achieve the following functions:

Expenditure analysis: through 8MSaaS expenditure analysis function and embedded commodity pricing extensive information, it supports risk management of various granularity or capacity aggregation levels, protects profit margins, and formulates category sourcing, recruitment and supplier negotiation strategies.

Strategic procurement: cooperation, strict and effective definition of demand, discovery, review, bidding, evaluation and comparison of global suppliers.

Contract management: quickly build, negotiate and execute creative contracts, including all necessary clauses related to safety regulations, policy compliance and risk avoidance.

Supplier management: manage a large number of regulatory compliance, inspection and control requirements at multiple supply chain levels, continuously track, evaluate and improve supplier performance, and form a fast, flexible, responsive and globally competitive supply chain.

Management accounting: make recruitment meet the lowest and highest enterprise performance goals.

From recruitment to payment: improve operational efficiency, ensure procurement compliance and clear global custody file chain.

Compared with other industries, procurement may play a greater role in the hotel industry, but it is not necessarily more difficult to manage. The use of 8MSaaS SRM electronic procurement system makes it easier for hotels to understand and overcome procurement challenges. It is a tactical and strategic method of purchasing services, which is committed to establishing a solid relationship between suppliers and customers and creating value for hotel business.