News
Hotel procurement: fewer suppliers, fewer invoices, a lower cost per occupied room
In many independent hotels, each department buys its own supplies: housekeeping orders amenities, the restaurant orders glassware, maintenance orders light bulbs. The result is a long list of suppliers, many small invoices and little view of what is spent. This guide shows how to bring OS&E purchasing back under control.
The hidden cost of every extra supplier
Each supplier adds an account to open, a minimum to reach, delivery charges, invoices to match against deliveries and payments to schedule. Order.co points out that matching invoices with deliveries by hand does not scale across many vendors. An article on Hospitality ON, written by a buying group, adds two effects: departments ordering separately lose volume leverage, and invoiced prices drift above agreed rates when nobody checks them.
Steer with cost per occupied room
Cost per occupied room (CPOR) is the rooms operating cost divided by the number of occupied rooms. Mews explains the calculation and notes that it can swing significantly between seasons. Tracking the supplies part of CPOR each month shows whether purchasing changes actually save money.
A 90-day consolidation plan
- Weeks 1 to 2: list every supplier. Export twelve months of supplier invoices from accounting. For each supplier, note the department, the categories bought, the yearly spend and the number of invoices.
- Weeks 3 to 4: group by category. Amenities, linen, tableware, housekeeping, small appliances. Spot categories bought from several suppliers for no clear reason.
- Weeks 5 to 8: compare and choose. For each category, compare price per unit, minimum order, lead time and delivery cost. Keep one main supplier and one backup.
- Weeks 9 to 10: set par levels and reorder points for each regular item, so orders follow a routine rather than emergencies.
- Weeks 11 to 12: one ordering process. One person approves orders, one list of approved products, one place to order from.
Buying group, marketplace or direct?
| Option | Suits | Limits |
|---|---|---|
| Direct from each manufacturer | Large volumes, custom products | Many accounts, high minimums |
| Buying group | Hotels that accept a fee and a contract | Membership terms, catalogue chosen by the group |
| B2B marketplace | Independent hotels wanting several suppliers in one place | Each supplier still ships separately |
How Suitality helps
Suitality brings European suppliers of hospitality supplies into one catalogue, with prices excluding VAT, minimums and lead times shown the same way for all of them. A single quote request can cover several categories. Start with hotel supplies, restaurant and bar supplies, housekeeping or guest room supplies.
