Avoid These Common Procurement Mistakes

Hospitality purchasing isn’t always easy. There’s a reason so many owners and operators turn to procurement experts to handle the job. Whether you manage a hospitality business or work in the procurement field, there are several common purchasing mistakes you want to avoid.

Read them below.

1. Relying on Standing Orders

Modern luxury hotel reception counter desk with bell

It’s easy to just let automatic orders go through every month. After all, demand can’t change that much season-to-season, can it?

The answer is yes. Consumer needs and preferences vary every season of the year, and even more during both real and perceived economic shifts. That’s why it’s important to regularly assess your ordering strategy.

Not sure where to start? The storeroom is your best bet. Take note of everything you’ve ordered in the last month and everything that wasn’t used. That’s where your sourcing adjustments will come from.

2. Allowing Locations to Source Services

Maid making bed in hotel room. Staff Maid Making Bed. African housekeeper making bed.

Did you know that you can source services on a national level? While letting location managers handle things like cleaning and lawncare scheduling may be easier, it can ultimately hurt your bottom line.

When you source nationally, you not only secure optimal pricing, but also standardize the look and feel of your facilities. Consistent property appearance and cleanliness are good for your brand image. Plus, if an issue arises at a location, you can more easily nip it in the bud. No more missed lawncare appointments or neglected gutters going under the radar.

3. Assuming That Every Order Will be Filled Correctly

Blurred background of many items inside cardboard boxes on warehouse storage shelves.

So, you’ve chosen products and negotiated prices. Your orders should come through perfectly every time, right?

Maybe not. Sometimes, issues can occur at the distributor level when it comes to pricing. Maybe you’re expecting to receive GPO pricing but are accidentally charged regular pricing. You could have a specific product you’re buying that’s replaced with something similar.

While these mistakes may seem minor, they can add up to a big difference in spend. That’s why routine audits are essential for every business. Keeping an eye on your purchasing allows you to stay ahead of any mistakes and avoid losses.

Ironing Out Your Sourcing Strategy

Hospitality procurement isn’t all doom and gloom. If you do your research and stay diligent, your purchasing plan can end up saving you money and improving your operation’s efficiency. It’s all about knowing the secrets to successful sourcing.

One of your best resources is a GPO like Foodbuy Hospitality. Learn more about us here.

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