Outdated procurement policies are a liability for the hospitality industry. Digital trends and transformations in supply ordering and delivery herald a more efficient future.
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There is an adage that haunts the hospitality industry. A delivery shipment is late, and when the property’s inventory runs out, someone must rush to the nearest convenience store—and pay off-the-shelf prices—before guest sentiment turns negative or operations break down.
Many hotel operators across the land have experienced such a scenario, each with their own myriad consequences, but all with a common root cause—an inefficient or inadequate procurement process.
With the right predictive analytics and technology solutions, inventory deficits will be easier to manage, while procurement solutions and online buying can allow for seamless, cost-effective ordering. It could mean the difference next time between peace of mind or a desperate dash to the store.
Old Way of Ordering
When Peter Tziahanas, EVP of operations for Hotel Equities, first started in hospitality, ordering supplies was a straightforward, manual process based on personal relationships with vendors and sales representatives. Now?
“Supply chain disruptions, labor shortages and fluctuating procurement costs have made maximizing operational efficiencies and protecting against margin erosion a challenge,” said Tziahanas. “Across the board, hoteliers have had to get more creative—sourcing from multiple vendors, adjusting standards when needed and even rethinking how we stock and store essentials. The days of ‘just-in-time’ inventory are fading, replaced by ‘just-in-case’ planning.”
The manual process might be gone, but keeping a hotel at optimal supply levels still comes down to the right processes. To remain fiscally responsible to property owners, Hotel Equities relies on a strong supplier network to plan for shifting lead times, price volatility and unexpected events.
That flexibility may keep ordinary shortages from impacting operations or guest experience, but for unique, experiential products, a disrupted shipment can be disastrous.
“At Postcard Cabins, [a Marriott International brand], we provide s’mores or campfire kits, and if we run out of a key component, it’s not as simple as reordering standard amenities,” said Tziahanas. “When our go-to products aren’t available, we’re at risk of paying premium prices for alternatives, or increased shipping costs for rush orders. And instead of focusing on guests, our teams are suddenly part-time supply chain specialists, hunting down backup products or explaining to a guest why their in-room coffee setup is missing creamer.”
Tziahanas sees the most growth potential in real-time, cost-efficient inventory tracking and AI-driven forecasting to help anticipate shortages before they happen. Sustainable choices like purchasing from regional vendors would not only lead to faster restocks, but could also boost local economies.
“Anything that simplifies procurement—whether it’s more streamlined vendor [solutions], or better integration with property management and point of sale systems—would be a game changer,” he said.
Planning With Precision
One of the main culprits of supply shortages is a lack of communication. Traditionally, producers and distributors down the line operate in silos with limited integration. The entire sequence is subject to interruptions and regular delays.
Amazon Business is transforming the way the hospitality industry procures its inventory. By supporting all stages of the purchasing process— from shopping and shipping to reconciliation and analysis—in one solution, hotels can respond swiftly to changing market conditions and guest preferences, ensuring they stay ahead of the curve.
“With Amazon Business, hospitality buyers can purchase essential supplies in one place and have them delivered directly to their location,” said Christine Carrillo, head of travel and hospitality for Amazon Business. “This eliminates the need to go off property and drive to the store, while keeping inventory optimized, freeing up employees’ time and energy to focus on what matters most—creating exceptional guest experiences.”
Amazon Business enables multi-user accounts with role-based access controls and purchasing workflows to streamline shopping and payments.
Some organizations already use e-procurement systems, such as Birchstreet, Coupa, and SAP Ariba, to help centralize their business buying. With the Amazon Business Punchout integration, buyers can access the selection and convenience available on Amazon Business while maintaining purchasing compliance and organizational control provided by these existing systems.
Through Business Prime, users can get fast, free delivery, including one-day shipping on millions of items, and can even set a designated delivery day for eligible items. Spend Visibility (a Business Prime exclusive) helps buyers uncover spend insights, while tools like policy creation with Guided Buying allow administrators to take action on those learnings and better optimize budgets.
Across all phases of the supply process, hotels can get what they need to create quality guest experiences on Amazon Business.
“Some of the top products frequently purchased by travel and hospitality organizations include home improvement items, furniture and electronics,” said Carrillo. “Customers have highlighted how coming to Amazon Business for hard-to-find items like pool supplies, maintenance supplies—even golf cart parts—has made their staff’s lives easier to receive these items just in time, without having to hold inventory.”
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Learn more about smart business buying in travel and hospitality.