Food and beverage management agreements are now as long and complex as the hotel management agreement, so the same degree of caution and care must be exercised in their structure and negotiation.

The role of procurement within a given organization can vary widely, from purchasing and supply chain management to strategic acquisitions, customer service, and relationship building. But for some markets, like the hospitality industry, procurement and purchasing managers are connected to the success of the business at nearly every level.

In the field of hospitality, procurement occupies a place of singular importance. It serves not only to supply the organization efficiently, but to produce value through optimal quality of goods and services as a function of customer service. And in the digital age, traditional hotels find themselves caught in aggressive competition with new, boutique-style accommodations provided by AirBnB and similar services, fighting to cut costs without sacrificing quality or user experience.

The traditional view of a supplier as a mere vendor, whose role in supply management is to ensure goods and materials are available in the shortest possible time and at the lowest possible price is changing. Suppliers are now considered an integral part of the whole supply chain whose action or inaction may derail an otherwise a well oiled supply chain. A major portion of a company’s funds are used to procure goods, services, materials, parts and various other requirements of a company to meet its customer’s obligations. When a customer has a stringent quality need or tight tolerances for critical materials, when service level agreements are strictly imposed, when penalties are crippling, it is then a business issue to have best practices in supplier management in place.

Those in the hospitality business who integrate a real-time, centralized, vendor management solution will quickly discover they have:

  • Total transparency for all transactions, reducing or eliminating maverick spend
  • Access to analytics that inform planning and supply chain management in support of:
    • Evaluating and strengthening vendor relationships
    • Obtaining better delivery times, the highest quality products, and the best prices.
    • Efficient forecasting and planning
  • More control over internal and externally sourced support for essential services, including Business Process Outsourcing (BPO)
  • Greatly increased efficiency of document and contract management

The ability to optimize hotel profits through a vendor management solution starts with selecting the right firm.

LIMITLESS offers a fully managed solution to ensure you are “paying for what you are receiving”. Ensuring contract terms are met as well as compliance standards. Tracking any potential risks, optimizing your billing and managing all contract and agreements in one central software solution.

Outsourcing vendor management to a third party will also help standardize processes; and consistency helps enable the transparency essential to effective governance. This helps to alleviate flawed data, and costly mistakes.

Our software will not only house every contract, service agreement, warranty or renewal agreement, but we also manage negotiations for better rates and terms saving your business from unnecessary fees and costs while maintaining quality standards. If you have questions regarding how to manage vendor contracts/agreements or would like more information regarding our fully managed vendor management solution contact LIMITLESS at (866) 504-4050.