Category : Hotel

The 3 Big Obstacles Hotel Management Procurement Professionals face (and how to best deal with them)

By Admin - 15-01-2020

The 3 Big Obstacles Hotel Management Procurement Professionals face

(and how to best deal with them)

Procurement is one of the most important processes in hotel management. A good hotel manager is one who knows how to handle procurement end-to-end in the most optimal way. Although procurement forms a significant part of hotel management, it is often overlooked by managers and that is a very costly mistake, in the long run. People working as part of Supply chain management are faced with various kinds of challenges on an everyday basis. If these issues are not dealt with in the right manner, it could hinder various other processes and lead to huge losses. Here are 3 Big Obstacles Hotel Management Procurement Professionals face and how to best deal with them.

1 - Cost Control  

Cost Control has been one of the biggest challenges for procurement managers. Cost control is definitely one of the most important objectives of procurement managers and yet it continues to be the biggest elephant in the room. The costs of products, materials, and transportation keep fluctuating continuously regardless of the restaurant-style. From fast-food chains to fine-dining restaurants, working out the most optimal supply chain model that reduces cost is the most important goal.

Besides taking care of the changing prices of the products itself, taking an extra step to ensure that your suppliers are still providing you the best value is essential. Cost Control involves keeping in mind many big and small things in order to achieve the desired profits and this is a big challenge to hotel management procurement professionals.

How to best deal with it? 

- Build strong relationships with the suppliers and vendors who have an impact on the profits. Make it easy for them to communicate and interact with you. This ease of doing business with you will encourage them to supply the best value and quality materials to you.

- Run a check on the market prices of your materials from time to time. In Hotel Industry, it is a common practice to procure products and materials from a select set of suppliers without changing them too often. This practice might lead managers in a situation where they're probably paying more solely because they aren't regularly checking with the market prices. Ensure that you run a thorough market price study to rest assured that your suppliers are still supplying the best value materials to you.

- Eliminate all types of unnecessary spendings and make this a part of your routine work. The hotel management supply chain can be so large and complex that it becomes so easy to overlook tiny unnecessary spendings in the process. Make a routine for it and do it on a regular basis so there are no blind spots in the process.

2 - Communication Blocks

Supply chain management in the hotel industry is easily one of the most overlooked departments. Hotel managers often do not look deeply into it unless it's a BIG problem that's glaring in the management's face. Various Communication blocks between different departments of hotel often lead to purchasers making uninformed buying decisions, which will affect the company profits in the long run.

It's easy to get trapped in the whole corporate hierarchy model where managers of different departments do not interact directly very often. Such blocks hinder processes and may lead to poor decisions on behalf of the management. The same rule goes with communications with stakeholders outside - from suppliers and vendors to logistics experts and purchase experts. Removing such communication blocks promotes optimal solutions and reduces any misunderstandings that may lead to poor purchasing decisions.

How to best deal with it?

- To improve internal communications within the hotel management, workout a solid strategy that ensures that there is smooth communication between the heads of various departments. Incorporate regular meetings within the management that ensure all decision-makers are on the same side of the page.

- Enhance your communications with external parties by building strong and lasting relationships with them. Meet up with them from time to time and address their concerns or blockages. Make communications with you an easy process so the right suppliers stick along with you for a long period of time.

3 - Lack of focus

A lack of focus with respect to adding end value to the product and recognizing the sales funnel accurately as to which ones are the most in demand and which ones are needed to be upsold is another Big Obstacle for hotel management procurement professionals. This lack of focus and clarity can lead to missed opportunities and increased costs, affecting profits directly.

How to best deal with it?

- Recognizing the sales funnel and appropriately segregating the products based on the demand rates. The next step would be to focus energies on meeting the needs effectively and upselling other products that are rather slow-moving.

- To define clearly the objective of each procurement strategy and following through the process end-to-end to ensure that the objective has been achieved.

- Being aware of the end customer's needs and preferences, and streamlining the processes to match such needs. The end goal of any strategy for a manager is to ensure customer satisfaction in the most optimal way.

 Final words

Being a Hotel Management Procurement professional can be a challenging role that requires individuals to look at the challenges at hand with fresh and newer perspectives every time. Tackling various obstacles day to day becomes a part of the job. Although the challenges don't get easier by the day, your capabilities to manage them get better by the day - and that comes from experience.

Remember that as a hotel supply chain manager or procurement expert, your job can be challenging and hard at first but you will get better at it as time passes by. New obstacles need new solutions and in an ever-changing hotel industry environment, new challenges pop up very frequently but with experience, efforts, and commitment, you can get past them. Persistence, focus, and attention to tiny details is the key to your success as a hotel management procurement professional. 

Abhishek Tripathi – HoReCa – General Manager West

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