How Value Optimisation will Play a Major Role in Supply Chain Procurement

Hospitality procurement will become more strategic and collaborative and will play vital role in restaurant business, say experts in the industry. Along with increased cross functional collaboration apart from building supplier relationship, procurement has become a major part in the supply chain system. At this moment the importance of the function is minimal and only a few organizations understand its importance.

Hospitality procurement will become less of a “service” and more of a “function”: Hospitality procurement professional will no more function as support and admin staff; they will play more important role in the organizations overall performance and value.

More shift towards end-to-end solution partnership rather than transactional relationship: Developing one to one supplier relationship, long term partnerships, involving suppliers for developing solutions will go up and it will bring in more business.

Hospitality procurement will see increased investments in-terms of personal / skills / technology: Training and investing time to improve the skills of people in Hospitality Procurement will see improvement. Technology advances faster than the most workers can keep up, so it becomes more significant to retain and develop the right person / skills on the job!

There will be a shift in hospitality procurement planning and strategies: Hospitality procurement will collaborate with organizations overall objective and goals and synchronize the internal objectives and plans.

Category management will be seen vital for effective hospitality procurement. Formulating A/B/C category hospitality procurement strategy, lead buyer concept will see improvements.

Process and operation efficiencies will also see a shift in near future. The way of conducting routine business in hospitality procurement will see a major trend change.

We will also see lots of innovation and creative thinking will be the key in the sector, adapting to new technologies will play a major role. Meanwhile, mobile and cloud computing technologies will play more important roles in the coming years, and you cannot deny this. Cost saving will not be the only agenda for hospitality procurement function; total value optimization will play a more lead role. Focus will be on increasing the business value from the spend.