Suppliers are an integral element to the success of any hotels which seeks both technological and operational competency. Especially for hotel new builds, the supplier management process is the heart pumping the blood across the project.
Effective procurement and supplier management have become an overall business strategy, more commonly known by multi-national corps as ‘supply chain management.’ A strategic approach towards suppliers is essential to extract the most value from both your investment and the efficient supply chain.
Operational Efficiencies
There are two primary purposes of a vendor management company, one lead to operational efficiencies and two control vendor management costs. The vendor management company controls all suppliers, data, and records from a single point of contact.
Having a single point of contact for vendor management delivers great benefits including:
- No Data Duplication
- Control of Contract Losses
- Managed Labor Costs & Payments
- Improved Vendor Communications
- Faster Task Completion Times
- Minimal Resource Wastage
- Vendor Renegotiations, and more.
Performance Management
A vendor management company will readily track & measure supplier performance, and service delivery. To ensure vendors are fulfilling their contract commitments, technology management partner observes suppliers for compliance, service delivery, quality of hardware, and task completion times.
Your vendor management company can also automate the process through a highly intelligent software to analyze data. Technology managers and CIOs can then identify problems, make changes, address challenges, and develop contingencies against risk.
Risk Compliance & Mitigation
A technology management company will ensure all your bases are covered in case of supplier risks and compliance. There can be several unforeseen risks that may include cost implications, regulatory compliance risks, brand visibility, franchise standard non-compliance, and other technology procurement risks.
Your technology management partner will track vendor progress, accumulate data, identify issues, verify suppliers, send out RFPs and RFIs. A vendor management company readily analyses financials, operations, and communications to keep various risks under control.
Reduce Costs
A credible vendor management company will keep check of your hotel’s expenses and a much closer look at your budget. With complete observation and control over the vendor management process, your technology management company will better control over costs. In addition, the CIO can then identify areas where costs need reducing and control.
Vendor management companies can help properly negotiate rates for labor, vendor partnership agreements, procurement contracts, and other expenses will significantly increase your hotel’s profit margins. Vendor management partners are equipped with the latest market knowledge & insights that allow them to procure cheaper hardware and have better relationships with hospitality vendors.
Build Lasting Partnerships & Stronger Relationships
Strengthening your partnerships, and building lasting relationships with vendors is every hotel owner’s dream, but just as difficult. It is essential to hold on to your good vendors, build loyalty in them, and negotiate great contracts.
Your vendor management partner can help build lasting partnerships with suppliers, primarily because they already have a great relationship between them. Your technology management company can easily integrate the vendor to embrace your vision and brand values, building a better relationship.
Conclusion
Vendor management has been a simpler, more overshadowed process that has received great attention in hospitality over the past 15 years. Everything from supplier qualifications, quotes, service delivery, and contracts to compliance then becomes the responsibility of your technology management partner.
You can have better relationships with your vendor partners, save on meaningless expenses, negotiate better vendor contracts, minimize time loses, and more. To talk to one of our technology management consultants give us a call or drop us a message now.
Advanced Hospitality Technologies is a leader in Hospitality Technologies. We have an award winning benchmark for providing affordable, reliable and most advanced hospitality Technology Solutions.
