What Supplies Guests are actually looking forward to in a Hotel Room?

Being a passionate traveler, I have been lucky to experience hospitality from many hotels across India. In hotels, apart from well-mannered staff and good hygiene levels, one thing that I look forward to is ‘Guest Supplies’. Generally, these amenities are crucial to give guests 'home away from home' feeling.

Liking and preferences of different guests vary. And these can vary for things as minute as degree of softness of pillows to fragrance of flowers!!

In hospitality industry, the aim of the service provider is to delight and pamper its customers. I personally believe that standard of a hotel is defined by the kind of services and facilities it offers to its customers.

For a procurement manager, satisfying its guests is like doing a rope walk between managing budget and fulfilling guests’ wimps.

So, it would really help if someone can decode the mystery of ‘What Supplies Guests are actually Looking Forward to’ in priority order.

But before answering this question, it’s important to segment consumers. For simplicity, let’s segment them into: Budget Guests and Premium Guests.

Expectations of these two kind of guests can be poles apart.

Let’s try to look at these expectations in finer detail:

• Budget Guests
• These are your value-centric guests. They expect you to provide good quality services at an affordable price.
• In this case, hoteliers are advised to focus on their basic needs. This group of guests might get satisfied with things like timely room service, water bottles in the room, clean bed-sheets and so on.
• Premium Guests
• These guests are quality-centric. They expect you to take care of all there comforts, irrespective of costs involved.
• In such a case, hotels need to add a “wow factor” in their services. For example, a bottle of wine or a basket of exotic fruits can seal the deal.

Now that we have gathered a basic understanding of expectations of different guests, let’s generalize it into a holistic concept and answer our key question ‘What Supplies Guests are actually looking forward to in a Room?’

To answer this, I will take reference from the best theory available on needs and wants, i.e. Maslow’s Hierarchy of Needs.

• Physiological Needs:
• These are basic needs which any guest (be it budget or premium guests) will expect from any hotel room.
• Example: Water bottles, bed, bed sheets & pillow cases etc.

• Need for Security:
• As for this need, guests look forward to personal security in their rooms.
• Example: Door locks, Hygienic toiletries, Privacy in room etc.

• Needs for Belonging:
• As per this need, hoteliers should be able to convince guests that they are being taken care of.
• Example: Well-mannered & friendly 24X7 Room service, Doctor-On-Call & other on call services etc.

• Esteem Needs:
• After all who doesn't like being respected? To showcase their gratitude & respect, hoteliers can give a personal touch to rooms.
• Example: Exotic Fruits & flowers basket, Bottle of wine etc.

• Self-Actualization Needs:
• This is the most difficult stage to fulfill. To attain self-actualization, hotels will need to comfort guests in all possible manner- rooms, events – everything should be designed according to guests’ choice.
• Example: Artistically designed rooms, specially designed itineraries & events.

While budget guests might get happy by merely first three steps, a premium guest will need to be taken through complete ‘Maslow’s Hierarchy of Needs’ to be satisfied.

To summarize, I would like to say:

First step starts with understanding your hotel’s target segment and consumer mind set (Budget or Premium). 

Second step will be to classify various services based on Maslow’s Hierarchy of Needs.

These two steps will help you in devising a sound strategy. After all this, final step is to procure items at the best possible rate and full-fill your guests' desires.

Hoteliers, now that you know the answer to one of the most difficult question in Hospitality, I wish you all the very best for procurement.

Keep your Guests Happy!

7 Commandments to Successful Hotel–Supplier Relation

Hospitality industry is probably the most customer centric industry possible. Whatever an hotelier does is keeping the guests in mind.

But we don't live in an ideal world. Do we?

Tastes and preferences of guests can be as distinguished as day from night!

As such, an hotelier needs to be always running around to ensure every wimp and fancy of guests is taken care of.

In such a scenario a trusted and efficient set of suppliers can be a boon. If an hotelier is able to select good set of suppliers, half the battle is won! Isn't it.

Hotel and supplier’s relation is one of trust and mutual respect. They are like two sides of same coin, with common purpose of serving the end consumer.

A supplier taking care of a few simple attributes can help hotels a great deal. Let’s try to understand some of these attributes:

1.     For a supplier, Respecting quality and time frame of demand is most important. Nothing can hamper a relation the way last minute cancellation can.
2.     A supplier, who is ahead of industry curve and can provide new and innovative products continuously is ensuring that he leaves a permanent stamp in a hotelier’s mind.
3.     A supplier who is well connected in the industry can ensure even the trickiest demands of hotels are met. Such a suppliers is an asset that no hotel will want to part with.
4.     A supplier needs to ensure that he/ she complies with all the necessary certifications and quality control checks as stated by the government.
5.     A supplier willing to be flexible as per hotel’s requirements earns added respect and gratitude in hotel’s eyes. Hotels generally ensure that such a supplier grows with them.
6.     Framing an object-oriented policy and using latest technology in business always proves to be beneficial for both Hotels and Suppliers.
7. An ideal supplier is one that sees itself as a business partner rather than just provider of goods. Suppliers are a very important part of hospitality value chain, it’s important that they consider themselves that way too.

In totality, Hospitality Industry is like a giant cob-wheel, with hoteliers and suppliers different instruments in it. A cob-wheel can’t function if either part breaks loose, so is true for Hospitality Industry too.

As far as maintaining relation is concerned, it’s simple, respect each other and deliver your best to the end consumers.

Hotels, maintain an healthy relationship with your Suppliers and work towards the best!

Procurement Solutions derived from the Power of Internet

One day without internet, and I start feeling as if I am put on an alien planet. Can’t imagine a single day without phone by my side.

Technology has taken center stage in our lives be it work or pleasure. Websites like Facebook and LinkedIn have entered our personal space the way it was considered impossible once.

Even in business environment, many developments take place each day on vendor and customer management front. Many online portals give option to access vendors for buying, selling or comparing goods– Alibaba, Indiamart are among them.

Lets try to understand how such portals can help hospitality industry.

From Supplier's point of view:

• Such portals can help suppliers in a number of ways:
• Online trading portals can help the suppliers in finding buyers as per his / her core competence. Suppliers can bargain and can command best price for their products.
•  Suppliers can network with premium buyers and can easily enter their good books.
• Suppliers can interact / chat with buyers in real time.
• Suppliers can easily understand client requirements and customization.
• On-line platform gives an add-on advantage of showcasing portfolio to multiple buyers at the same time. Hence, overcoming the constraints of marketing on the go.
• Suppliers can better manage their inventory levels by knowing client requirements before hand.
• Supplies can save valuable time in receiving requirements, follow – ups and consignment fulfillment.

From Hotel's point of view:

• Hotels get easy access to thousands of suppliers pan India. They can understand price trends and latest designs with just a click.
• Using feedback and referrals given to suppliers by fellow hoteliers, hotels can make more informed decision
• Hotels can do in depth analysis of supplier competency and experience
• Hotels can save time and money wasted in offline supplier search
• Faster information dissipation in raising orders, design customizations / updates etc.
• Online sourcing has better turnaround time. Hotels can ask for much more than just 3 quotes (current industry standard)
• Communication is the life line of any organization. Online ecosystem ensures better and faster communication system.

Internet is here to stay. Slowly but steadily online ecosystem is becoming the status quo. 

Its best for us that we embrace it in procurement as well and open the world of new possibilities with the power of Internet.

Procurement Manager - Key Challenges

We all have visited a hotel or a restaurant at least once in our lifetime. A good eating joint or a good place to stay is like a gateway to new 'wow' life. It can refresh our senses like no other thing.

First thing that comes to my mind when I think of a hotel is all the grandeur, and spic and span.

But wait a minute..!!!

How did all this come at one single place in just the right proportion.

Look at that carpet handcrafted from Kashmir, or that chandelier, as if hanging right from heaven, or at that special Italian marble adorning the floor. Splendid, isn't it?

Hospitality is the best a country has to offer to its guest. And India has seriously done a great job in pampering her guests. After all, our traditions teach us Atithi Devo Bhava (Guest is God).

India is like a growing child, and is strongly making her demands. As per stats, Indian food service industry alone will reach US$ 78 billion by 2018.

A major portion of this food services demand is made by hospitality industry. And its duty of the procurement manager to meet them.

Procurement Manager is like a silent guardian, caped crusader (you know where these lines are coming from! Huge Batman Fan I am) whose job is to make sure, behind the scene right strings are pulled to get best possible product for his/her hotel.

One single decision of a procurement manager has the potential of making or breaking reputation of a hotel.

Procurement in a nutshell means: Sourcing Right Thing at The Right Time for The Right People.

Procurement guys have to face number of challenges to deliver quality services to the customers.

Lets look at some of these challenges:

• Knowing all major suppliers Pan India, inside out. This may include their strengths, weaknesses, behavior ... everything.
• Procurement manager can’t always wait for different departments to come up with their exact requirements. They need to stay ahead of the curve by keeping track of consumption rate and past purchase cycle.
• Procurement largely involves people management skills. If a supplier counts you among his friends, it’s quite likely he will cut out a deal specially for you.
• Many of the suppliers in India run business in a traditional family centric environment. Its responsibility of procurement manager to understand dynamics of all suppliers involved
• Managers need to approach the potential vendors in the market and guide them in order to get the desired qualities of goods from them.
• Getting delivery of goods on time and balancing the demand and supply curve during the peak period is also one among the major challenge faced by the procurement managers. Procurement manager needs to forecast demand well in advance to meet them in peak hours.
• In spite of being in a contract with suppliers,  managers have to keep a close watch on all the last minute requirements in order to avoid stock out situations.
• A good manager needs to be well versed in all upcoming technologies in his / her line of work.

Congratulations for overcoming all the challenges and giving us an experience we can cherish.

Keep up the Good Work! All the Best.

Credit Policy - An Overview!

Think of a world where you don’t need to pay your suppliers – I mean you don’t need to pay at all!!!

Sounds fascinating, doesn't it. But alas, real world isn't as fascinating.

But wait a minute, we do have a savior that can get us as close as possible to this ideal world. It’s called 'Credit'.

While buyers just can’t get enough of it. Suppliers want to keep it at as much distance as possible.

This savior (I mean “credit” who else were you thinking about :P ) has an ally, called 'Credit Policy'. 
The term credit policy is used when it comes to agreement/contract between two parties for an extended period of time.

Before discussing ahead, let’s get to know other friends of our beloved 'Credit':

• Credit Limits - This is the amount of money suppliers are ready to grant hotels as credit. Both the parties discuss on limits of contract before entering into an agreement.
• Credit Terms – This includes the time specified by the seller to hoteliers for the payment of credit. Early payment wins you discounts, while late-payment gets you penalty.
• Security Deposits – This is the collateral hotels have to submit to suppliers for credit. You need best negotiators to finalize on this!
• Legal Documentation - After defining the policies in detail, suppliers and the hoteliers get into a contract through a legal documentation process. Very important in order to safeguard the business. This also includes legal memos, purchase orders, credit letters, invoices, packing list, delivery receipts, etc. (Some really heavy stuff!)

Here are some points that need to be included in an invoice:

• Invoice number and date
• Buyers and sellers address, Delivery address
• Complete description of the goods or service and along with packing or item numbers.
• The Hotelier's purchase order number of a reference against the job order.
• The amount, quantity, weight and description of goods accordingly.
• The Payment terms along with due date for the payment.
• Signature of the suppliers and the production manager if the goods are being exported from the factory.

Finalizing on credit policy is no child’s play. An in-depth negotiation happens between hotels and suppliers. (Some really heated serious discussions!)

There are no accurate credit policy norms prescribed by law or government. Negotiation is a function of business specifications, cash-flow situations and industry standards. Volume of business, cost involved per transaction and the frequency of delivery of goods are some other important attributes playing an important role in negotiation.

No points for guessing, if you have good past relations (or you are the biggest hotel/supplier in town … kudos to you!) you might get some preferential treatment. But generally, 30, 60 or 90 day credit policies are accepted in this beautiful industry.

If you are a supplier, you will always want to have a credit policy with fewer credit terms. However, for hotels more credit terms means availability of more liquid assets.

Negotiation is the key to credit policy. If the supplier has a reputed market profile and the hotelier is a premium service provider, there are good chances final credit term will be a win-win.

At the end of the day, whatever spick and span you see in hotels, procurement guys and suppliers make that happen. They go through all these technicalities so that guests can enjoy to their fullest. Keep up the good work guys.

Happy Procuring!