Vendor management is an essential aspect of success for any hotel operating in today’s industry outlook. That being said, procurement differs by hotel size and type covering multiple areas of the hotel.
An effective supply chain is the building block of great customer experience at hotels. Hospitality technology solutions have evolved to such magnitude that vendor management has become paramount to the success of every business.
Technology trends in U.S. hospitality are transforming fast, with tech-savvy tourists & travelers visiting from every corner of the world. That’s why supply chain managers today are deeply involved in strategic decision making in hotel businesses due to their enhanced role in modern hospitality.
Procurement, supply chains & vendor management carry great significance for hotels to develop meaningful business partnerships and lasting relationships. Vendor management plays a central role in efficiently managing the supply of goods & services, and, deliver optimal value through vendor relationships for the hotel.
Let’s take a look at three valuable reasons every hotel business should consider hiring vendor management services from a hotel management company.
The primary reason to hire hospitality technology providers to manage vendors is because of the increased visibility they offer hotels. Vendors tend to offer more expensive quotes when hotels interact with them directly. Hotel technology management companies are better equipped with the knowledge to handle vendors and generally have partnerships with these suppliers.
Hospitality technology providers have established relationships with vendors, they can negotiate better rates, and have access to large-scale discounts from vendors. Hotels can massively benefit from cost reductions and discounts to maintain their budgeted revenue.
That being said, a skilled hospitality technology provider also manages the micro aspects of the supply chain. This includes requesting quotes from vendors and negotiating prices for various hotel technologies, that may come expensive without a technology management partner.
Another essential cost that hotels can save on through a hotel technology company is the administrative expenses of finding, negotiating and contracting a vendor for the hotel. Onboarding suppliers & vendors can be both hectic and costly for hotel owners, however, its an everyday task for a hotel technology company.
Outsourcing vendor management services to specialized hotel technology providers is also a great way to centralize the hotel supply chain. Hotel owners and management can then concentrate on the business operations while the hospitality management provider actively manages suppliers and vendors.
Central management of hotel technology vendors is brilliant especially in the case of hotel new builds & renovations. When timelines are tight and there are specific measures to maintain budgeted costs, the central management of vendors is essential to keep meeting benchmarks.
The vendor management process itself is an accumulation of various functions including the initial RFI/RFP process, selection, contracting, real-time management, payouts, etc. Centralized management ensures all functions are actively monitored by experts.
Better Relationship Management
Outsourcing vendor management to skilled hospitality professionals is great for developing and maintaining lasting relationships. Since hotel technology providers are already at good terms with popular technology vendors, hospitality businesses have a great foundation to begin their relationships with them.
In case hotels are partnering with vendors without a consultant in between, they can always develop a database of top-rated vendors & suppliers. This can reduce vendor onboarding times, procurement costs, and establish lasting relationships with popular vendors without having to look for new ones.
Technology management companies already have ties with most popular industry vendors. They can help maintain longer-term contracts with better prices for upgrades and renovations. At the same time, a hotel technology provider will also ensure that hotels don’t have to worry about vendor issues and contracting agreements.
I hope you will find our 3 reasons to hire a hospitality technology partner for vendor management credible when deciding on your next procurement crusade. Managing the supply chain can be a daunting task for hotel owners if they are stuck with higher prices, low-quality vendors, and daily vendor issues.
A hotel technology management company can easily mitigate against several hotel owner concerns in this department. Thanks to their vast expertise hotel technology companies can offer great benefits to a hotel with better procurement rates, flawless vendor management, and centralized control over the entire supply chain.