Amid heightened regulatory challenges, the hospitality industry is looking to gain greater control of its supply procurement.
It’s getting harder to keep a hotel stocked. Economic volatility, logistical challenges, weather phenomena and more are all upsetting the existing paradigm of hospitality supply procurement. But rising costs and shipping delays aren’t the only twist in the routine process of stocking a hotel with the goods it needs to run successfully.
Complex regulatory requirements have made compliance a greater issue than ever, and a lack of certainty has made countless hospitality groups think twice about where they source their products. But there is hope on the horizon. Through the power of digital innovation, businesses are not only overcoming these disruptions, they’re revolutionizing the process altogether.
System on Edge
Hoteliers are already feeling the pinch. Shane Lonowski, general manager of The Farnam, Autograph Collection, in Omaha, Neb., has worked in the hospitality industry for 20 years and seen his share of shakeups before. In his view, in order to stay viable, inventory management has to adapt.
“Suppliers now carry fewer high-cost items in their warehouses, which can lead to longer lead times,” said Lonowski. “This balance between longer wait times for specialized items and faster shipping for common goods has reshaped how hotels manage their inventory and operations.”
Maintaining a hotel at optimal supply levels is a constant balancing act. Unexpected spikes in occupancy or event-driven demands can strain supply levels and imperil the guest experience. Having strong vendor relationships, contingency plans and inventory forecasts can be the difference between calm and catastrophe.
“Essential operational supplies, such as linens or toiletries, can lead to increased costs if hotels must source expedited or higher-priced alternatives to maintain service standards,” Lonowski said. “For luxury or custom-branded items, the impact can be even greater, as delays or substitutions may affect the guest experience and brand perception. Ultimately, the fiscal impact depends on the ability to find suitable alternatives without compromising quality.”
Keeping track of inventory and deliveries is a drag not only on time, but money. Last-minute supply emergencies take employees away from critical roles, while negligent tail spend eats away profits if left unchecked. And yet, even with external disruptions, operating at below-standard supply levels threatens one of hospitality’s most important services.
“At its core, hospitality is about taking care of people,” said Lonowski.
Sourcing the Solution
Nearly 30 years ago, Amazon revolutionized how people shop online. Today, the company is transforming how hotels, restaurants, and other hospitality businesses manage their supplies through Amazon Business. This business-focused solution combines Amazon’s wide product selection with features designed specifically for companies, like bulk ordering, consolidated shipping and spending analytics. For hospitality managers who need to plan ahead and keep their operations running smoothly—from stocking guest amenities to maintaining kitchen supplies—Amazon Business can help them to simplify the complex task of managing inventory and supplies across their facilities.
“Our focus on the travel and hospitality industry was born out of a recognition of the unique procurement challenges faced by the industry,” said Christine Carrillo, Head of Travel and Hospitality for Amazon Business. “As this evolved, our solutions expanded to include industry-specific features, bulk purchasing options and dedicated hospitality supply categories—all designed to meet the specific needs of hotels, restaurants, and other hospitality organizations.”
Critically, Amazon Business offers robust tools that help properties maintain control during the procurement processes.
The Guided Buying tool enables administrators to prefer, restrict and block products to steer their buyers. Administrators can create policies, like preferring businesses with diversity certifications to highlight these businesses for buyers.
Amazon Business integrates with more than 300 third-party platforms, such as e-procurement systems like Birchstreet and Coupa, expense management systems like SAP Concur and Emburse, and idP systems like Microsoft Azure and Okta. With these integrations, an organization’s buyers can access the selection and convenience available on Amazon Business while maintaining the compliance, management and control provided by their organization’s existing system.
With the Punchout integration, for example, buyers can easily route orders tailored to their organization’s spend policies through their e-procurement system for approval, getting what they need with peace of mind.
“[We] offer a suite of tools to help hospitality organizations maintain control over their purchasing processes,” said Carrillo. “These include purchasing approval workflows, spending limits and restrictions, policy controls for specific products or categories, detailed reporting and analytics, tax exemption management, supplier diversity tracking and compliance documentation management.”
As the procurement landscape remains in flux, Amazon Business is growing into a critical ally for hospitality organizations. By helping properties maintain compliance standards, while simplifying the shopping and shipping process at all levels, it’s given the hotel industry an edge over uncertainty. At long last, they’re free to do what they do best—take care of their guests and customers.
Learn more about smart business buying in travel and hospitality.
