You spend weeks researching suppliers, fielding bids, negotiating prices, making a selection, drafting an agreement, redlining, tracking delivery and performance, and ensuring payment.
Ever experienced this before?
Oh and not to mention all the other vendors you have to find or the infinite other things on your plate.
Getting caught up in manual procurement like this can be frustrating. So how can you find the best suppliers with minimal distress?
In this blog post, we’ll share:
- Insights into the world of procurement in hospitality
- Five key metrics that can aid you in selecting the best suppliers for your hotel
- A solution that simplifies your entire procurement process
Insights Into the World of Sourcing, Purchasing, and Data Management
Sourcing, purchasing, and data management are more complex than ever. It’s important to be innovative and incorporate modern technologies in your procurement strategy.
Streamlining your procurement makes it easy to vet suppliers, source products, and send and receive orders. You eliminate the potential for errors and save plenty of man-hours.
5 Things to Look For in a Supplier for Hotels
1. The Relationship between Price and Value
Every hotelier will have a different definition of value based on their business experiences, needs, and customers. But make sure to define yours. What does the ideal product/service/execution look like?
With modern procurement solutions, it’s easier to find the best supplier value using competitive bidding strategies.
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Reputation and credibility
It goes without saying that you should verify a vendor’s reputation before entrusting them with supplies. It you peace of mind knowing you have a credible source for all hotel needs.
You can verify a supplier’s reputation by
- Reading reviews and testimonials. How often do you read reviews before adding an item to your online shopping cart? All the time, yeah? Then you should do the same as part of your procurement activities. This will give you an idea of the supplier’s customer service.
- Ensuring the supplier is compliant with regulations. New laws are passed and old ones are changed like car tires. As you’re complying with regulations in your hotels, ensure suppliers are also compliant with industry regulations like OSHA standards.
3. Quality of products and services
Here’s a quick description of how purchasing quality products contributes to a hotel’s business growth
So, how do you select suppliers that can meet up with the quality standards of your hotel?
- Verify the product quality by asking for samples and inspecting them yourself.
- Review the supplier’s responsiveness. Ensure they can respond to queries promptly, and that they have a clear process for how they handle customer complaints.
4. Sustainability and Social Responsibility
Nowadays, patrons care so much about the effect of their bookings on the environment. As of February 2022, 78% of tourists planned to stay at least once in an eco-friendly hotel.
Being sustainable earns your hotel a good reputation. But you must also ensure the products you buy come from a sustainable supply chain.
How do you make your procurement activities more sustainable?
- Check supplier’s environmental and sustainability practices by asking questions such as:
- Are they using energy-efficient practices?
- Are they reducing their carbon footprint?
- How are they reducing waste and water consumption?
- Do they promote recycling?
- Verify that the supplier is ethical and complies with labor laws. You don’t want to get entangled with a supplier who exploits their employees.
5. Support and Partnership
Hotel suppliers are partners in the success of any hospitality business. If there’s value in a long-term relationship with a supplier, emphasize it from the outset. Long-term alignment reaps both greater savings and strategic execution.
Your Sourcing Requests, Contracts, and Vendors, All in One Place
Procurement is an essential part of running any successful hospitality business, but it doesn’t have to be a nightmare.
Take advantage of a solution that simplifies procurement and gives you back your time.
Procoto helps you manage sourcing, suppliers, and contracts at the fraction of the cost of the big guys. Plus it’s a collaborative tool that (1) helps you manage across your sites and (2) allows for easier communication with your properties.
