6 Reasons Procurement Technology Can Benefit Your Hotel Operation
Running a procurement department in a hotel takes a lot of work. Placing orders for goods needed by each department, monitoring costs, checking invoices, and navigating product substitutions are just a few of the responsibilities a hotel procurement department is responsible for.
One way to streamline it all and cut down on labor is to utilize procurement technology.
Procurement technology can be a valuable asset when it comes to cutting costs and managing the supply chain. It provides you with visibility into your purchasing habits so you can get a better understanding of what purchases are impacting your bottom line – both the negative and the positive.
Implementing innovative procurement technology gives your company the competitive edge to stand out from other hotels.
Here are six benefits of using procurement technology in your hotel operation:
1. Purchasing Analytics
Without technology, there’s no way you’re getting a clear accurate picture of your spending habits. Procurement technology gives you real-time visibility and purchasing analytics on how your spending is impacting your profitability. You can leverage your purchasing data to make more profitable business decisions.
2. Product Optimization
AI-driven procurement software recommends opportunities for new savings. If you’re carrying out your procurement duties manually, you’re sure to be missing out on product recommendations that cost less but still impress your guests. Procurement technology can help you identify product substitutions that reduce costs so you can maintain a high-quality guest experience and increase profits.
3. Food Cost Management
Optimize your inventory and streamline food cost management with procurement technology for more accurate forecasting and effective ordering. Technology gives your back-of-house staff the tools to track in-house inventory levels and automatically adjust recipe costs so your chef can place more insightful orders. Embrace labor saving technology to simplify inventory and stay on top of ordering.
4. Contract Utilization
It’s extremely crucial to stay efficient when managing your contracts but sometimes, human error is just inevitable – especially if you’re managing contracts manually. Utilizing procurement technology to manage your contracts can help ensure you’re paying the right prices on each item you purchase. Procurement technology can help you maximize your profits and extract value out of all your contracts so you can focus on your guests.
5. Supply Chain Management
Managing the always changing supply chain can be time consuming. Procurement technology gives you the ability to streamline the entire supply chain process, improve efficiency, and reduce costs. A more streamlined supply chain translates into lower operating costs that requires less time to manage. Drive profitability by leveraging procurement technology to optimize your purchasing and ensure you get competitive pricing.
6. Cost Control
Keeping costs low is vital to the success of your hotel. You don’t have to spend hours trying to locate products you can save money on. There is a way to save money on the items you are already purchasing and keep costs low. Procurement technology allows you to control costs and find reduce pricing on OS&E items that you’re already purchasing. Unlock instant savings by tapping into the power of technology.
Powerful Procurement Technology That Delivers
Hospitality procurement departments often lack visibility into purchasing success factors such as pricing, distribution contracts, commodity benchmarks and leveraged buying. Source1’s procurement technology delivers purchasing visibility and thousands of ways your operation can save on products and services including food, disposables, linens, maintenance supplies, and more.