Hotels continue to face pressure on profit margins. Smart purchasing can help hotels to reduce costs. Procurement organizations such as HSM identify saving opportunities and boost profitability. Even small changes in buying behavior, can make a big impact!
Hotel bottom-line performance is under pressure due to rising costs and a challenging topline revenue. Geopolitical and economic challenges, as well as other environmental factors, are causing supply chain disruptions. At the same time, labor costs are still on the rise, pushing hotels to find new innovative & efficient ways to operate. In this complex environment, optimizing procurement is essential, but without the right expertise, insights, and time, it’s difficult to do effectively.
That’s where procurement organizations like Hilton Supply Management (HSM) make the difference!
The Power of Insights
Working with a Group Purchasing Organization (GPO) brings more than competitive pricing. HSM offers e-procurement tools that give hotel owners and operators control and visibility into their spending behavior. These tools enable data-driven decisions. By using the reporting capabilities of these tools, procurement partners can help analyze spend patterns and identify opportunities for savings.
All these insights that our team has about market development and supply chain processes can help hotels as well to navigate rules & regulations, often related to sustainability. Many of these regulations are linked to companies’ supply chains, requiring them to gather and report on supplier data and due diligence. As such, HSM actively tracks and monitors regulatory requirements, to ensure procurement teams stay informed of potential changes and to help customers stay up to date.
Reviewing Your Top Spend Items
In addition to hotel spend oversight, cost-effective solutions across all categories are key to improving financial performance. Consider the top 10 spend items in most hotels, such as eggs, bacon, milk, toilet paper. By leveraging volumes and expertise supported by minor adjustments, like switching from size L to M eggs or buying bacon in bulk, can lead to significant savings without compromising guest satisfaction. HSM helps hotels to identify the best-buy assortment while often increasing quality
Value Engineering
HSM’s procurement expertise goes beyond the traditional F&B and OS&E categories. Our Project Procurement team are experts in the field of value engineering. Because of our extensive network of FF&E suppliers and project agents, our teams can create more value for your project by finding cost-effective alternatives, without compromising on quality. Sometimes, even the same product can be offered for a better price!
Dealing with Labor Challenges
With ongoing labor shortages being experienced in many countries, outsourcing strategies are necessary. HSM connects hotels with vetted service providers for housekeeping, kitchen staff and more. Innovative technologies, like cleaning robots and AI tools to reduce food waste, also help reduce labor costs and improve operational efficiency.
Unlock New Revenue
Profitability isn’t just about cutting costs. HSM has a wide network of regional and local suppliers that offer smart hotel solutions to drive additional revenue and enhance the guest experience.
HSM offers continuous support & advice to hotel partners to reduce workload and improve business performance. With competitive pricing, expert support and actionable insights, hotels can beat costs more than they could imagine.
Interested to learn more and explore how you can start saving? Reach out to HSM to schedule a meeting!
