What is The Role of Procurement in Hospitality?

It’s hard to overstate the importance of procurement in hospitality businesses. Hospitality procurement is mainly related to the purchase of goods and services for restaurants, resorts, and hotels.

This industry has particularly unique requirements that are not common in other industries. There are four main aspects to businesses in this industry: Buying goods and services, sourcing, contract management, and operation management.

Photo by Edvin Johansson on Unsplash 

Buying Goods and Services

Procurement plays an important part in the hospitality industry. This is about acquiring goods and services for hotels, restaurants, and similar businesses. Even industry experts frequently mix up procurement and purchase. The purchase procedure entails ordering products after the procurement department has recruited the suppliers to provide the goods.

Operational Management

Identifying sources for supplies, negotiation, payment plans, and cycle management are all important aspects of the procurement function. They can separate a top-notch business from one that falls short of expectations.


Sourcing is the process of finding potential suppliers for the different goods and services required by your company. Once selected, requests for prices and bids must be submitted, manufacturing facilities must be examined, and quality issues must be handled.

Contract Management

Contract management is the center of procurement, which is essential for building excellent relationships with suppliers and ensuring dependability. Payment conditions are mutually agreed upon here, all in the service of cash flow.

Bottom Line

Penny understands what it takes to maintain a smoothly running, lucrative firm. Since the hospitality sector has unique needs that are not shared by any other industry, there are numerous requirements that must be met in order to ensure the quality and stability that all guests expect from your business.

That’s why we offer a wide range of flexible, affordable procurement solutions that can be tailored to your specific needs and goals. All you need to do is contact us and let us take you to the next level.



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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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