How hotel purchases are organized
Purchases for hotels
There are many kind of hotels - network, non-network, apart-hotels, hostels, mini-hotels. Differences between them are number or apartments for guests, conditions and location. But they have a common feature - the procurement process organization.
All hotels regardless of the number of stars need to purchase household goods, food, apartment repairs, payments for utilities. Well-planned purchases affect hotel profitability.
Why do companies optimize the purchasing process?
As usual, purchases in small hotels are managed by administrators or accountants. There are not procurement and finance departments in most of the large hotels. Therefore, there the purchasing process is managed by either the accountant or the hotel manager.
Analysis of hotel spendings with special software allows you to predict a number of purchases depending on the tourist seasons.
The purchasing process automation can be reasonably provided that there are more than 50 apartments in the hotel. Obviously, for small hotels that are designed, for example, for 50 guests, the purchasing processes automation is not critically required.
How are purchases in small hotels organized?
Generally, in the Bed and Breakfast (or small) hotels, several people are responsible for the guest reception, providing of daily hotel activity and purchases.
In such hotels, one person can also cope with purchases. To do this, just go to the supermarket with a list of necessary products. Generally, managers of small hotels keep financial accounting in Excel. It is normal, but if hotel grows up fast, managers have to think about the solution to automate the procurement process already now, before he becomes uncontrollable.
What is the complexity of large hotels purchasing?
If one owner has several hotels, the number of purchases increases. Collecting purchase requests from e-mail and entering them into Excel, you can spend more than was budgeted.
Even if these hotels are not Hilton or Intercontinental, the procurement process is still complicated. This situation actualizes the issue of spendings, and the saving becomes earnings.
In hotels with recreational areas (swimming pool, golf-links, garden) and additional services (gyms, beauty salons, long distance calls, transfers, etc.), the purchases look even more difficult. It depends on increasing of a number of suppliers, and the purchases and costs to maintain these zones and to provide services are all harder to control in Excel.
In hotels with recreational areas (swimming pool, golf-links, garden) and additional services (gyms, beauty salons, long distance calls, transfers, etc.), the purchases look even more difficult. It depends on increasing of a number of suppliers, and the purchases and costs. To maintain these zones and to provide services are all harder to control in Excel.
How Automation Helps to Make Savings
Procurement optimization can reduce 5% of costs associated with staff spendings. By making the procurement process transparent, employees spend less time to create requests for purchases, which frees up their working time to perform direct responsibilities.
10% of costs can be saved by controlling contracts. The software allows you to trace relevance or combine a lot of contracts, which will reduce the cost of processing them.
Early payments help save 2% of all costs. The automated process makes it possible to track contracts and current payment dates. Contracts with suppliers may include a discount condition in case of early payment.