The hospitality industry faces very numerous problems related to purchase of goods and services. The traditional procurement solutions are not capable enough to solve these problems entirely. E-procurement has emerged as extremely effective in catering to the purchase problems commonly faced by hotels.
The numerous benefits of e-procurement include shortened time of delivery, improved staff efficiency, elimination of paperwork, better financial controls and auditing, and reduced levels of inventory. The automated systems of procurement and inventory offer electronic invoicing, budget tracking, automated e-mail bids and much more. E-procurement solutions assure the success of your business.
E-procurement Solutions can strengthen your Hospitality Business
Listed below are the reasons as to why you should go for automated procurement and inventory systems:
- Monetary Savings:
Automated procurement and inventory solutions provide significant savings as compared to manual systems. These savings range from reduced costs of administration to shortened cycles of fulfillment and procurement. Elimination of manual systems leads to increased staff productivity. Tracking data for securing vendor rebates results in considerable monetary savings.
Automated bid system cuts down the supplies’ costs. This is done through enabling the procurement staff of the hotels to increase the potential vendors’ number and identify the preferred suppliers. Often in large hotels the purchasing responsibilities are carried out by different departments and different locations. In such cases, e-procurement solutions can heighten the purchase power by consolidation of orders. Consolidated orders lower the cost of the transaction and leads to larger volume discounts.
E-procurement solutions are particularly beneficial in food and beverage industry. Here, such solutions allow the purchasing staff to detect the items falling into the category of “low cost/high sales”, rather than “high cost/low sales”.
Automated procurement and inventory solutions can significantly streamline the whole process of purchasing by diminishing the variables involved. Purchasing staff can create their individual electronic catalogs which have only those items on which the hotel has an interest. This allows them to shop online by comparing and make significant savings.
- Time Savings:
The streamlining of inventory and purchasing control offered by e-procurement solutions saves a lot of time. Tasks that earlier consumed hours and days can now be conducted with just a few mouse clicks. Staffs now do not need to waste time by matching deliveries with receipts. Tasks like figuring out more complex invoices and keying in of redundant information no more consumes time.
Administrative tasks related to vendor management like soliciting bids and creating contracts, have also reduced significantly. Now, the procurement staff can concentrate on the job’s strategic elements. Purchasing managers now have to spend lesser time for overseeing details of the administration and in analyzing patterns of expenditure. Negotiation of favorable terms with the suppliers does not take much time now.
- Automated solutions that consist of bar coding would allow more fast and reliable management of inventory. Staff members simply need to scan the inventory utilizing the UPC or SKU code on each product. The information is then captured and recorded by the system.
E-procurement solutions lead to the creation of a business model that is far more efficient. It eliminates the time-wasting and unnecessary activities resulting in increased profitability.
Summary: E-procurement solutions help to improve the business of hotels by making significant time and money savings. It has replaced paperwork with electronic systems resulting in greater accuracy.
Author’s Bio: Myke Thomas is a renowned author who writes articles on Procurement Solutions and related topics. He has a vast experience in writing highly informative articles. His articles have been helpful to many readers.