Achieving hotel profitability isn’t always an easy task. You pay big bucks for quality products and solutions to maintain your properties superior service and exceptional guest experience.
You spend days searching for the best brands to partner with and hours forecasting potential ROI.
But you don’t have to.
Keeping your hotel costs down is the key to a successful hotel. So, what can you do to improve your bottom line and increase your profits?
Invest in procurement technology.
Procurement technology simplifies the procurement process and can help you reduce your costs. It can increase efficiency and the speed of your procurement process, while ensuring inaccuracies are avoided and savings are maximized.
There are many benefits of using procurement technology. Let’s take a look at four ways procurement technology can be used to improve your bottom line:
1. Identify new savings opportunities
Unlock new levels of value and instant savings by tapping into the power of procurement technology. Using the data intelligence that technology provides, you can ensure accurate forecasting is achieved and discover new opportunities for savings you may not know about otherwise. Think of procurement technology as a one stop shop for access to suppliers and high-quality products your already purchasing that you could be saving money on.
2. Real-time visibility into your purchasing
Hospitality procurement departments often lack visibility into purchasing success factors such as pricing, distribution contracts, commodity benchmarks and leveraged buying. Procurement technology provides real-time visibility into your purchasing so you can make more informed business decisions. AI-driven procurement can provide you with product optimization, purchasing analytics and actionable data on how your spending is impacting your profitability.
3. Optimize food cost management
Knowing your food cost and staying up to date on your inventory can make all the difference in your hotel’s profitability. How do you know if you are over ordering or not ordering enough? How do you know what plates are making you money and which ones are costing you revenue? Are you spending hours trying to count inventory and place orders for more? Procurement technology gives you insight into your food cost management without all the manual data entry.
4. Streamline contracts
Ensure you are paying the correct prices, make corrections, and maximize the value of all your negotiated contracts. Procurement technology can provide your operation with detailed contract evaluations so you can streamline the contract lifecycle into an automated workflow minimizing errors and improve your profits. Let technology work for you and take your contract management to the next level that includes price auditing and impact analysis.
Procurement can be time consuming and labor intensive. An inefficient procurement process can lead to increased costs and decreased profits.
Ready to take the leap to power procurement savings? Sign up as a Source1 member for free today!