The hospitality industry is always changing as it seeks to meet the needs of its customers. In this example, change is a good thing, but it can also bring added expenses. While you are likely working on ways to balance the needs of your customers with changing finances, it’s important to find ways to continually improve your supply-chain costs. In today’s post, we’ll share the five steps you should follow to effectively manage your supply-chain costs.
At Source1 Purchasing, we offer great products at great prices, which means that you can optimize your supply chain, increase your purchasing power, and boost profits. If you are interested in learning more about what we can do for you, then please call today to get a free savings analysis.
1. Maintain Quality Customer Service
As a hospitality professional, you already know that it’s important to offer customers what they want while avoiding products or services they don’t. The danger of adding items that your customers don’t want could result in increased supply-chain costs for you. Likewise, eliminating a service they expect could also have negative impacts on your business.
For example, if the restaurant in your hotel offers filet mignon year-round, then it’s important to be sure that you’re tracking the annual changes in cost for that item. By planning for the months when the cost of the meat is higher, you can make the necessary adjustments to alleviate any increase in spending. You could place a larger order while the costs are lower, adjust the pricing on your menu, or vary the size of the portion serving. By honoring your commitment to offer filet mignon year-round, you will keep your customers happy, while adjusting your procurement orders will keep your bottom line happy.
2. Utilize Proper Sourcing
Procurement is the act of purchasing goods and services at the best possible prices at the right time. At Source1 Purchasing, we offer access to our team of procurement experts, visibility to leverage purchasing data, and control over the products, contracts, and services you need. We care about your brand’s standard, which is why our services start with a free supply-chain analysis, so that we can offer you the insight you need to make the best decisions for your business. Proper sourcing is critical to the success of managing your supply-chain costs, which is why you can trust us to provide you with cost- and time-saving opportunities.
3. Evaluate Total Cost of Ownership
The total cost of ownership (TCO) refers to not only the purchase price of an item, but also the total cost of operation over the lifetime of that item. This means that you need a hotel procurement company that can carefully compare the original amount of the item with the long-term costs. To fully evaluate the TCO, it’s important to consider the following items:
- Preparation time
- Customer expectations
A thorough evaluation of these categories should help you to make a decision about which product offers the lowest TCO. At Source1 Purchasing, you can trust our team to make decisions that will provide the greatest value for your supply-chain costs.
4. Minimize Product Handling
Working in the hospitality industry requires you to provide reliable services for each of your customers. The farther away that your suppliers are from your customers, however, the less reliable your supply-chain network is. Whether you need to source particular towels, soap, or bedsheets, you know that it’s crucial for you to have those products delivered as quickly as possible and in perfect condition. In order for that to happen, it is necessary to minimize product handling. The more that each order is “touched”, the greater chance there is for error and damage. When you partner with Source1 Purchasing, we can offer the ideal procurement solutions for your company. With more than 22 years in business and more than $7 billion in purchasing power, we can offer the award-winning service you deserve.
Working with a supply-chain management company is one of the best decisions you can make to better manage your procurement services costs. At Source1 Purchasing, we can help you save money, provide access to a number of assets that you need, and increase your purchasing power. By partnering with us, you can take advantage of our contractual relationships with more than 850 food and beverage suppliers and more than 250 OS&E (operating supplies and equipment) suppliers.
Source1 Purchasing is a leading Purchasing Services Organization (PSO), that provides innovative procurement-based solutions, and we work with companies that range from single-location and multi-unit operations to major corporate facilities. If you are in the hospitality industry, then we can help you improve your offerings by leveraging our purchasing power. Contact us today for a free supply-chain analysis and discover a better way to manage your supply-chain costs.