When it comes to running large-scale operations like casinos and resorts, keeping the wheels turning smoothly is no small feat. From luxury linens and fresh lobsters to high-end whiskey and dim sum, everything needs to be exactly where it’s supposed to be and just when it’s needed. But when you’re moving 17,000 purchase orders a month and juggling inventory across five warehouses, “keeping things in order” takes on a whole new meaning.
At the heart of this tale is Steve Wynn, a visionary who helped transform modern Las Vegas, and Angel Fragoso, the detail-oriented genius behind inventory and warehousing at companies like Wynn Resorts. Angel’s decades-long career offers a masterclass in how fine-tuned inventory practices and smart logistics can be leveraged to unlock massive cost savings and operational efficiency.
Here’s the story of how one man’s obsession with process and technology turned the chaos of hospitality logistics into a well-oiled machine with BirchStreet – and what we can all learn from it.
A lesson in building greatness from the ground up
Before we get into the nitty-gritty of inventory practices, here’s a little backstory. Angel Fragoso was fresh out of school when Steve Wynn tapped him to oversee purchasing at the Golden Nugget. Wynn saw something special in Angel and took him along as he created iconic properties like The Mirage, Treasure Island, and the Bellagio.
Angel wasn’t just following Wynn around for fun; he was setting up purchasing, warehousing, and inventory processes that could handle the unique challenges of each property’s massive scale. From running kitchens with thousands of ingredients to procuring luxury linens with months-long lead times, Angel’s work ensured operations stayed on track without endless overspending. Fast-forward to today, Angel is regarded as one of the sharpest minds in the hospitality biz – a pioneer of what’s possible when technology, strategy, and a dash of obsession come together.
Why inventory matters – even when you think it doesn’t
One of Angel’s big takeaways from a career managing warehouses that make the size of Costco look quaint? Inventory is non-negotiable. Sure, storing things costs money, but here’s the kicker – in the world of 24/7 Las Vegas hospitality, you don’t get a second chance to “run out.” No guest wants to hear, “Sorry, no lobster tonight.” That’s why Angel thinks inventory is a lifeline, not a liability.
For massive properties like Wynn Resorts, warehouses create breathing room. They make it possible to buy in bulk, minimize over-ordering, reduce spoilage, and nip theft in the bud by using BirchStreet. Plus, they save properties from the logistical chaos of relying on direct-to-kitchen deliveries for every little thing.
Take perishables, for example. Angel shared that top-tier properties like Wynn turn their food inventory about twice a month, managing high-use items like lobster and produce with clockwork precision. This translates into less waste, smarter spending, and – crucially – better guest service.
Oh, and don’t even get him started on the accounting benefits. By treating inventory as an asset rather than a direct expense, properties can keep their P&L statements steady. Think of it as taking control of your financial story instead of letting it run wild with every food truck delivery.
The role of technology in inventory wizardry
Back in the day, managing inventory meant drowning in sticky notes, clipboards, and office drama. But at Wynn, technology streamlined everything. Angel worked with BirchStreet Systems, a cloud-based procurement platform, to turn chaotic processes into seamless, paperless workflows. Here’s a taste of what their tech stack accomplishes:
- Cycle counts over monthly madness: Rather than waiting until the end of the month for an overwhelming, error-prone inventory count, the team cycles through inventory systematically. High-use, high-value items like liquor or live lobsters are counted weekly, while lesser-used goods are checked monthly or quarterly.
- Dashboards with real-time updates: Ordering, receiving, and stocking might sound boring, but turning them into digital workflows was a game changer. A dashboard showed exactly where orders stood (shipped, received, or shorted) with automatic updates. And Angel wasn’t shy – he even built productivity tracking into the system to keep everyone on their A-game.
- Barcode scanning with AccuBar: Inventory counting for 100,000 bottles of wine isn’t something you want to do manually. Enter AccuBar, a scanner-based tool to digitize inventory checks. It handles everything from bottles to bins, even calculating partial bottle values for high-priced spirits.
- Virtual warehouses: Need to secure seasonal seafood or linens from a foreign manufacturer without stuffing your physical warehouse? Virtual warehouses offered the perfect solution. These allowed Angel’s team to track inventory stored at vendor facilities, holding bulk orders while maintaining inventory visibility.
The result? Fewer headaches, more transparency, and an operation so smooth it feels like magic.
Strategic buying means big savings
Anyone can buy stuff; the real trick is knowing how to buy. For Angel, purchasing strategy was just as critical as storage. For instance, Wynn’s kitchens often bypass middlemen to work directly with manufacturers. Buying linens from India or seafood from California requires upfront investment – but with warehouses on-site to store the goods, bulk buying translated into massive savings.
And, for high-end consumables like fine wine, Angel introduced restricted warehouses and custom permissions to ensure only qualified staff could pull those items. No unauthorized hands were getting near a $5,000 bottle of Louis XIII cognac.
Warehousing also solved supply chain woes. Long lead times are a fact of life when ordering custom-made items like specialty furniture or luxury tableware. By storing several months’ worth of key goods on-site, Wynn Resorts reduced downtime and could pivot quickly during international shipping disruptions.
Best practices for success
If you’re thinking, Great, but how do I put this into practice? Angel’s experience offers a blueprint for success:
- Start small, plan big
Not every operation needs five warehouses, but even a single stockroom can benefit from better inventory tracking. Use cycle counts to keep things orderly without overloading your team. - Invest in the right tech
From dashboards to barcodes, tools like BirchStreet and AccuBar are worth their weight in gold. The time saved on manual tasks eventually pays for itself. - Train your team
Processes are only as good as the people running them. Put simple, clear systems in place and give your staff the training they need. - Trust the data
Analytics can reveal weak spots you might otherwise miss. Pay attention to what the numbers tell you and adjust accordingly.
Turning organization into profits
At the end of the day, Angel’s story isn’t just about warehouses or technology. It’s about how organization can unlock creativity, confidence, and – yes – profitability. When you have well-oiled processes, you’re not just saving money; you’re creating space for big ideas and better service.
Whether you’re running a luxury resort or a neighborhood restaurant, the lesson is simple: order matters. And when you get it right, everything – from the lobster in your kitchen to the numbers on your balance sheet – works out better in the end.