Hospitality Industry Challenges Addressed by Procurement Vendor
Hospitality is the most versatile industry that has customer satisfaction as its heart. Even a single negative impression can spoil the brand value built over years and bring down business drastically. So, the hospitality industry takes utmost care to achieve superior customer experiences and for this reason, they are particular about every product they use. But, in a hurry to get things done hospitality industry mistakes the procurement process for purchase and go for suppliers and is failing miserably in long run. To successfully achieve the hospitality industry’s vision, the organizations should lookout for a procurement player who plays an active and strategic role, then being a just deploy and forget type of supplier.
Here are some of the list of strategic Hospitality Industry Challenges Addressed by Procurement Process
Hospitality Industry Challenges Solved by Procurement Partner
Keeping Track of Purchase Volumes
Usually, the hospitality industry has high purchase volumes, and the purchase data is not captured effectively, and a lot of paperwork is involved in it, often organizations do not have visibility into their procurement operations. The hospitality industry cannot afford to hire resources and invest in robust tools to record, report, analyze procurement data, and generate analytics. The entire process can be a costly matter.
Choosing Products Specific to Business Culture
The hospitality industry may have different areas of businesses and services (like hotels, resorts, Motels, cruise, and so on), and choosing and procuring products that are specific to these business areas and their vision is challenging, a lot of thought process with the right mix of professionals is needed. To procure the right products that fit into the hospitality area of business, hiring individuals is cost-ineffective. Here is where the need for strategic procurement partner is needed. To offer better solutions to the hospitality industry, the procurement partner comes with experienced and skilled group designers, architects, and manufacturing facilities who offer state-of-art approaches to architect tailored solutions.
Expanding New Business Areas
Exploring other associated business areas is very common in the hospitality industry. For example, a hotel business may open a resort or some different chain of associated businesses. The hospitality industry face is every time the business demands some updates, one can’t run out every time to find a vendor for products and services, get quotations, inspect plants, assess the quality, and so on. Another challenge here is procuring high volumes of products for better pricing on time with their dynamically changing procurement needs.
Maintenance is a regular aspect of any industry and these can turn out to be very expensive if not properly handled. The same is with the hospitality industry too. Compared to the rest of the industries, customer satisfaction has a higher value in this industry. So, even a small delay in this process will seriously affect the brand value and leads to customer dissatisfaction. It would not cost-effective to hire someone every time a repair has to be done. Instead, getting the right procurement vendor would ensure product quality and ongoing maintenance without the hospitality industry having to worry about hiring some technician.
Lack of Support from Suppliers
Most suppliers operate with a formula: “Deploy and Forget”, and do not have a dedicated customer service team to offer continuous support and fill the communication gaps right from order processing to support after deployment. This hospitality industry often gets to know the status of their order and get a chance to get doubts cleared about the products after deployment. Whereas partnering with a procurement vendor can help the leaders to track the status of the product development status, deployment, after delivery support and ensure ongoing maintenance activities.