Purchasing is a strong force to improve profit in the long term. And profit is important, as profit is the oxygen of business. Profit is the basis for a future: for the corporate future, for the investment future, for the employee future. “Purchasing” is therefore a strategic essential and a vital control instrument of any modern & intelligent corporate management.
Done properly, purchasing creates excellent value added advantages for all business areas, frees up, saves and creates resources, and optimizes processes.
Purchasing – The brilliant turbo booster for corporate success.
Purchasing is a top-quality “return booster”: Reducing purchasing expenditure by only 2% increases profit by 12%. The sales equivalent, i.e. the same profit effect by increasing sales alone, is a factor of 5 – 6 (example hotel, NOP 5%).
Black box purchasing – The hospitality sector generally buys much more than it is aware of. Indeed, it is not only food, beverage and consumables that are procured. It goes much further: power, vehicles, external cleaning, facility management / technical maintenance, insurance advertising agency, hotel photography, illuminated advertising, investment goods, payroll accounting and much more. This is all procurement! In total, it is now 35% of the entire costs of a hotel – and the trend is increasing. In addition to this are the process costs (i.e. indirect procurement costs) associated with procurement: selection process, offer comparison, ordering, goods acceptance, inventory, invoice management, payment.
However, effective and holistic purchasing management is not only about costs. It is about the right products, quality, and supply reliability. It is also about sales & marketing, as the purchased products and goods make a significant contribution to the positioning of the hotel on the market and to the well-being of the guests. Without purchasing, there are no sales!
That is also our understanding & our philosophy. We see purchasing holistically, and we understand it strategically.
This is why we describe ourselves as “Hospitality Experts 4 Supply Chain Management”.
Want to know more about supply chain management? You can find various sources and information here: