Best Strategies to Manage Hotel Supplier Relationships

hotel supplier management

Relationships with suppliers are important much more than sealing great deals. Supplier Relationship Management (SRM) is a tough subject that requires the creation and maintenance of long-term connections in order to achieve long-term profitability. A reliable supplier relationship reduces the burden and worry of having to renegotiate contracts or constantly bring in new suppliers.

That’s why in this article, we’ve outlined several strategies to help improve your hotel supplier relationships.

Photo by Cytonn Photography on Unsplash 

1. Respect & Honesty                        

Mutual respect and openness to accept each other’s demands and viewpoints pave the path for suppliers and buyers to collaborate in ways that benefit both parties. Openness and honesty are crucial components in relationship management. Providing information and being open about plans and aims increases the chances of establishing agreements that benefit everyone, especially our vital travelers.

2. Show Them an Inside Scoop

Every component of your hotel is scrutinized, from the bedding and shampoos in the rooms to the Wifi, and can have a substantial impact on a guest’s decision to return.

Also, online review sites have made it much easier for guests to share their views, whether positive or negative. Maintain regular communication between both marketing and procurement teams to highlight any problems that suppliers should be aware of.

This will support the supplier in understanding the needs and wants of your customers, allowing them to continue meeting your standards and avoiding awkward talks later on.

3. Keep it Consistent

While different areas in a hotel must collaborate, it is best if the procurement process is managed by one person, group, or unit. This means that suppliers have a regular point of contact who can establish rapport, administer a common budget, and ensure that the supply chain is adequately integrated. Having different units handling supplier relationships can result in confusion and mismanagement.

4. Use an Effective Tech Solution

Using the proper tool can make SRM more efficient and productive in a range of ways. Some solutions, for instance, will allow you to engage with your suppliers 24/7 or to obtain the data they need without wasting hours phoning or messaging and waiting for a reply.

Bottom Line

There you have it. These are our top four strategies to optimize hotel supplier relationships. In this day and age where everything is automated, you cannot maintain a healthy relationship without using effective technology. 

We at Penny offer a wide range of solutions that can meet your specific needs and goals. Just  contact us, and let’s get started!

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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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