As is common knowledge in business, transaction costs are expenses incurred when buying or selling goods or services. These are associated with the work required to bring goods or services to market. Irrespective of the size of business every hotel must choose between “make or buy”. This means they must decide to produce the goods and services that they offer themselves or not.
The world generates a whopping 3.5 million tons of plastic and other solid wastes each day, and reducing that number is a primary part of protecting the environment. However, when it comes to heavy contributors, many hotels remain guilty of producing massive amounts of waste each year that can contribute to global warming and other environmental issues. For that reason, reducing waste within your hotel establishment is of utmost importance – whether it be related to food waste or other materials.
A purchasing audit provides managers insight into the processes used to order products, highlights what products are purchased, displays the selection criteria used for each product and vendor, and outlines the procedures followed at each step. In the fast-moving hospitality industry where most produce consumed is externally sourced, such audits allow for a review of vendors, products, costs, quality and wastage.