Procurement Transformation within Hospitality

Client Background:

• Client: Regional office of a multinational hospitality brand
• Industry: Hospitality and tourism
• Challenge: Overcomplicated and inefficient procurement processes, lack of strategic sourcing, higher than average costs, and inconsistent supplier management across properties. 

Objectives:

• Goal: To transform procurement practices to drive cost savings, enhance operational efficiency, and align with corporate sustainability goals.
• Key Objectives:
• Implement strategic sourcing initiatives to optimize supplier relationships and negotiate better terms.
• Streamline procurement processes to improve cycle times and reduce administrative burdens.
• Integrate sustainability criteria into supplier selection and contract management.

Assessment Phase:

• Conducted a comprehensive assessment of current procurement practices, including spend analysis and supplier performance evaluation.
• Engaged stakeholders from various departments to understand their needs and challenges related to procurement.

Strategy Development:

• Developed a tailored procurement strategy aligned with corporate goals, focusing on category management and strategic sourcing.
• Established clear KPIs to measure performance and monitor progress towards objectives such as cost reduction and supplier diversity.

Implementation:

• Implemented new procurement policies and procedures aimed at standardising processes and enhancing transparency.
• Introduced e-procurement tools and technologies to automate workflows, improve data analytics capabilities, and support decision-making.
• Conducted training sessions to upskill procurement teams and foster a culture of continuous improvement.

Results:

• Achieved significant cost savings of 23% through renegotiated contracts, an e-Auction facility, and optimised supplier relationships.
• Reduced procurement cycle times by 35% and improved compliance with corporate sustainability standards.
• Enhanced stakeholder satisfaction by ensuring timely delivery of goods and services while maintaining cost efficiencies.

Conclusion:

• The procurement transformation initiative at the regional office of our hospitality client exemplifies our commitment to delivering measurable results through strategic insights and actionable solutions. By aligning procurement practices with corporate objectives and leveraging innovative approaches, we empowered the client to achieve sustainable cost reductions and operational excellence.

Explore how our tailored procurement solutions can drive similar transformative results for your organisation. Contact us today to learn more about our consulting services and how we can support your procurement goals.