Procuring hospitality services is an art unto itself. (Meet the Michelangelo of procurement partners.)
Most procurement departments are excellent at buying everything from lawn care services, to food service, to equipment, to uniforms and more. Procuring hospitality services, however, requires a sophisticated approach that takes into account a number of important factors.
For example, it’s critical that you clearly understand the day-to-day operation of the services you’re trying to buy, as well as factors in the marketplace. Some of the things that must be considered include:
- Wages – And what it will cost to hire and retain excellent service employees
- Tipping – Do you currently have a tipping environment? If so, is your customer volume at a level where employees can generate enough tips to make up for their lower hourly wage? If not, you’ll have trouble retaining them
- Competitive rates – What are competitors in your marketplace paying their team members? Paying less sounds like a good thing, but not if it’s at the cost of a lower service level or a higher turnover rate
- Proof of citizenship – A lot of vendors hire illegal aliens for frontline services. Does your procurement process ensure that this won’t happen with your vendors?
- Clean record – You’d be surprised how some vendors don’t do yearly background checks on their employees to ensure they’re safe to drive, are drug-free and don’t have other legal problems
- Service DNA – When procuring hospitality services, how do you know the team you’re hiring is staffed with exceptional service personnel (not just some people wearing uniforms)
Procurement departments often buy hospitality services like they do janitorial services—based on price, price and price.
At Vendalytics, we understand the importance of procuring hospitality service providers at the most affordable price possible. But at the same time, we believe in looking at the total cost of ownership as it relates to hospitality services. As with many things in life, you often get what you pay for. And with services where you need to make a great impression on guests, patients and visitors—or where there is risk involved (e.g., parking cars, shuttling people, transporting patients, collecting money, etc.)—the total cost of ownership can often be less with a vendor for which you are paying more.
You need to have comprehensive information for vendors in your RFP about every aspect of your needs (from hiring, to training, to service delivery, to management, to reporting expectations), as well as detailed information about your facility. Otherwise, you may end up inking a low-cost contract initially, but in the end dealing with higher costs (or even worse, having your brand tarnished because of poor or illegal service delivery).
Vendalytics can help you walk that fine line in procuring the best vendor at the best price, so you get the right service team to represent your brand at the lowest total cost of ownership.
Procurement Service Options
From à la carte to full service, Vendalytics provides a myriad of customized, ROI-focused procurement services—all for the hospitality industry.
Getting the best ROI possible is procurement’s #1 goal. Partnered with Vendalytics, you’ll have the experience that comes with sourcing, negotiating and signing hundreds of contracts in the hospitality industry on behalf of a wide spectrum of clients—from small boutique hotels, to large hospital networks, to international holding companies.
Procurement services include:
- Establishing internal goals, performance standards and RFP objectives
- Developing service and product specifications
- Determining all fixed and variable cost drivers for total cost of ownership
- Developing a current market analysis for local, regional and national competitors
- Recommending strategic sourcing strategies for cost and risk reduction
- Establishing internal review and selection committee
- Determining schedule for all phases of procurement
- Writing, presenting, editing and creating final RFP
- Developing weighted RFP scoring system
- Identifying vendors conforming to criteria from existing public information, as well as long list of proven hospitality product and service suppliers which we’ve worked with in the past
- Reviewing vendors’ information and capabilities and selecting initial candidate pool
- Sending RFPs (either online or physical RFPs) to pre-screened vendors
- Evaluating proposals using weighted RFP scoring system
- Informing winning and losing vendors; inviting finalists to present to your company
- Developing criteria for presentations and providing vendors with instructions
- Establishing scoring system for presentations
- Determining schedule and length of presentations
- Evaluating vendors based on weighted presentation scoring system, as well as company/vendor chemistry and other factors
- Performing necessary due diligence (e.g., reference checks, financial stability, etc.)
- Informing winning and losing vendors, as well as press if applicable
- Negotiating and finalizing contract