The Road To The Future

Hospitality Procurement is one of the most challenging aspects of hospitality management in India, writes Nitin Shankar Nagrale, Founder and General Secretary, HPMF.

Strategic Hospitality Procurement is considered as a critical part of the supply chain for any company that intends to remain competitive for years to come. A well-developed strategic hospitality procurement process directly translates into improved business performance by way of focusing on bottom-line savings in the long-term. To do so, companies need to manage and source their supply base in an efficient manner, while streamlining the process as a whole to retain strategic viability.

The responsibility to streamline the process is the responsibility of Hospitality Procurement in an organisation. So what sets strategic Hospitality Procurement apart? While considering the long-term, the process of pruning away the weeds and the unruly edges becomes an ongoing activity. As long as the organisation functions, the activity continues. Companies that intent to head towards Strategic Hospitality Procurement must understand this would require a complete overhaul of their current Hospitality Procurement and sourcing model. Advancements like web-based purchasing and software systems move from being advisable to necessary or required. Purchasing accountability suddenly takes a whole new importance. Spend analysis becomes integral to operations.

THE OBJECTIVES

To make a shift towards Strategic Hospitality Procurement, understanding major objectives is essential. Let’s take a look:

Relationship with the key supplier has to be enhanced and built upon.

Determining and identifying exactly which aspects result in maximum bottom-line savings.

Putting a stop to maverick buying and enforcing centralised Hospitality Procurement where necessary.