Procurement is vital in the hospitality industry. Its purpose is not just to effectively supply the company but also to create value through superior quality goods and services.
Hospitality businesses, like all companies that acquire products and services in the modern economy, require proven, cost-effective solutions to their problems. In this article, we’ve listed the top five common problems in hospitality.
1. Lack of E-Procurement Integration
Without a central e-procurement solution to manage these procurement responsibilities, even the most experienced procurement managers may find themselves facing a constant stream of difficulties.
Failure to identify and implement an e-procurement solution for your company’s specific needs can lead to missed or duplicated orders, erratic spending and lost chances to form new alliances with suppliers for higher cost savings.
2. Poor Planning
In a seasonal industry like hospitality, it’s difficult to determine how much and when to buy a certain item. People want high-quality products and services, and you don’t want to come short, so you may have to spend more than you need to ensure that customer satisfaction does not decline.
Also, if you load up on items while they’re cheaper but don’t use them, you’ve effectively squandered your resources, lost time and worked on managing storage that you didn’t want to use.
3. Ineffective Supplier Relationships
Developing excellent relationships with suppliers is crucial to the success of your business. Without them, you may lose out on profitable offers, bulk pricing, or even strategic agreements that can generate not just savings but also help your company achieve its objectives.
An e-procurement solution makes it easy to capture and exploit information for mutually beneficial partnerships across the supply chain in an industry like hospitality. Close partnerships make it simple to keep clients pleased while also adding value through high-quality goods, services, and support.
4. Choosing Cost-Saving Over All
In an ideal world, top-rated goods and services would be abundant, inexpensive, and free. In the real world, though, high expenses and limited budgets can push you to focus on lower prices rather than offering the products your clients anticipate and require. However, procurement solutions play a vital role in using opportunities to create value rather than save money.
5. Ensuring Regulatory Compliance
Laws change regularly, and new ones get passed. It is critical to be aware of regulations that influence your company in both positive and negative ways.
This can be especially challenging for businesses that operate throughout a country or worldwide, as legislation varies from one region to the next. And if the suppliers are in a different area than your company, this becomes even more difficult to handle. It is vital to ensure that all products conform to the laws of each region you work in.
E-procurement may play a larger part in the hospitality industry than in others, but it does not have to be more difficult to handle. The right software can help you identify all common problems in your operation and solve them without ever falling behind. At Penny, we can help you do just that. You only have to contact us to get started!