Common hospitality procurement challenges and ways to address them
After countless interviews with GMs, we found out that one of the biggest challenges in hospitality sourcing is inadequate supplier service levels. We break them down into 4 pillars of service levels and offer some ways hospitality procurement managers can avoid these potholes and go above and beyond.
The hospitality industry relies heavily on a constant supply of goods and services. An inadequate level of service from suppliers can be a huge challenge for hospitality companies, which means that without an effective purchasing process, companies can face numerous challenges.
Here are the 4 most common challenges in hospitality sourcing and we give you recommendations on how to address these issues and which specialized platforms you can use.
1. Unreliable Delivery Times:
Late deliveries can disrupt hotel operations and result in stockouts. To mitigate this, develop contingency plans to minimize disruptions in case of delays. Additionally, platforms like Lilo Hotel Supplies or Supplier Performance Management (SPM) Solutions provide detailed insights into supplier delivery times, enabling informed decision-making when selecting suppliers
2. Low-Quality Products:
Substandard products can damage a hotel’s reputation and lead to customer dissatisfaction. Hotel Managers can address this by establishing clear quality standards with suppliers and conducting thorough inspections upon delivery. Utilize platforms like Product Quality Management (PQM) Software or Supplier Auditing Services to monitor and evaluate product quality, or leverage customer feedback from platforms like Amazon or Google Reviews.
3. Poor Communication:
Effective communication is essential for resolving issues promptly. Ensure you have direct communication to your sales rep and leverage platforms like Tradeshift or Coupa to ensure clear and documented communication with suppliers.
4. Lack of Flexibility:
Inflexible suppliers can hinder adaptation to changing circumstances. Implement demand forecasting tools to anticipate fluctuations and adjust orders accordingly. Consider flexible purchasing agreements that allow for adjustments based on demand changes. Platforms like ForecastPro or Tradeshift facilitate demand forecasting. Platforms like Lilo Hotel Supplies offer flexibility in supplier selection as well as demand forecasting, ensuring you hedge against such inflexibility.
Consequences of Inadequate Supplier Service:
Inadequate supplier service can lead to increased costs, reduced guest satisfaction, and decreased employee morale. By investing in digital platforms, businesses can effectively manage supplier relationships, track performance metrics, and foster open communication.
What are some of the strategies that you, as a hotel manager, apply to address the challenges of supplier procurement?
Lilo Hotel Supplies offers a complete platform for finding and selecting tested suppliers, demand forecasting and invoice consolidation, speeding up the procurement process for hospitality companies.
Need assistance in choosing the right platform to address supplier challenges? Reach out to us at customersupport@lilohotelsupplies.com for expert advice and insights. We’re here to help you navigate procurement complexities and drive success in the hospitality industry.