Procurement isn’t just about buying things – it’s about doing so efficiently, strategically, and with an eye on both what’s best for business and what creates an excellent experience for hotel guests. For an industry that revolves around delivering comfort and convenience, procurement processes can either help achieve those lofty goals or get bogged down in inefficiencies. Thankfully, experts like Adam Butts of Crescent Hotels and Jim Marinc of Marriott shared strategies at our BirchStreet North America Conference that address some of the most pressing procure-to-pay (P2P) challenges facing hotels today.
Whether it’s wrestling with users who “don’t have time” for complex systems, managing frequent turnover, or ensuring compliance across properties, there’s no shortage of hurdles. But, as this dynamic duo shows, overcoming these challenges starts with smart solutions and investing in proper processes.
Time is the enemy – or is it?
One of the biggest complaints raised by hotel staff is the dreaded “I just don’t have time to use a system.” Sound familiar? For Adam Butts, that’s an all-too-common scenario – and one he has no patience for. His approach gets straight to the heart of the issue by addressing how inefficient systems (or inefficient use of systems) make things more time-consuming than necessary.
Take something like “confirming POs.” Some hotel staff call in an order (step one), manually input the same purchase order into the system (step two), and then share that information with accounting (step three). It’s an inefficient merry-go-round that wastes hours. Instead, Adam insists that staff learn how to properly utilize systems like BirchStreet, which streamline the process into a single step. Create the PO in the system once, and it seamlessly handles communication with suppliers, tracks invoices, and feeds into accounting. Time saved, sanity preserved.
Jim Marinc adds a compelling point here – whether staff process orders correctly or not, the work eventually needs to be done. Waiting until the end of the month to reconcile messy records will only cost more time and create headaches. The solution? Invest time upfront in doing the job properly with the tools provided.
Training is non-negotiable.
If time is the problem, training is often the solution. And Adam and Jim agree that this component is non-negotiable for overcoming several procurement-related hurdles – chief among them, staff turnover. Few industries see turnover as frequently as hospitality, and getting new staff trained quickly and effectively is crucial.
Jim explains that training isn’t one-size-fits-all. Some people prefer eLearning modules, while others learn best through hands-on training or buddying up with experienced staff. Marriott has embraced a multifaceted approach – they offer eLearning two weeks before a property goes live with a system, provide in-person support during implementation, and hold follow-up sessions to answer more nuanced questions after users have adjusted to the system. This structure ensures users aren’t just trained but also confident in their abilities.
For Adam, one of the keys to success is accountability. New users don’t get a login to the system until they’ve completed training, which ensures that everyone using the system has the necessary knowledge. “If they can’t get their login until they go to training, now they’re going to get trained,” he quips. Simple, but effective.
Additionally, both experts stress the importance of teaching staff why these systems are so critical. It’s not just about clicking buttons or following procedures. Using procurement tools correctly ensures smoother operations, helps prevent costly errors, and ultimately improves the guest experience.
Building champions to tackle turnover.
No matter how much training happens, ongoing turnover means compliant and efficient use of systems is an ongoing challenge. Enter the idea of “champions” – team members who not only understand the system but are passionate about using it effectively and helping others do the same.
Building champions within a hotel team can significantly ease the burden of onboarding and training new staff. These champions become the go-to people for troubleshooting and questions, building a culture of compliance and competency. Jim mentions that champions often come from surprising places – front desk staff or engineers, for instance – who are eager to advance their careers and take on new responsibilities.
One way to encourage staff to step up as champions? Incentivize them. Whether it’s opportunities for networking, career visibility, or simply the joy of helping others, providing perks for these super-users can create a willing and enthusiastic group ready to tame turnover.
Compliance and content go hand in hand.
Nothing derails a supply chain faster than inconsistent or poorly managed content within the procurement system. For instance, if a user goes to order an item that isn’t in the system or finds a vendor missing, their first instinct might be to buy from an outside, non-contracted source. That’s a slippery slope that leads to higher costs, broken compliance, and even potential quality-control issues that could harm guests.
Adam is blunt about this issue – “If you have BirchStreet without content, having the right vendors in there, they have this great tool, but they can’t use it effectively.” For a procurement system to work, it needs suppliers and items loaded in advance. Additionally, something like pre-set order guides can make life infinitely easier for users. Instead of searching for what they need, staff can log in, click a department-specific guide, and find everything already laid out for them.
But, Adam notes, you can’t just spoon-feed users forever. Staff need to learn how to create and manage order guides themselves. Without that knowledge, the first price change or content update turns into a crisis.
Jim chimes in with a reminder – adopting contracted suppliers and best-practice order guides isn’t just about control; it’s also about creating a better guest experience. By ensuring staff are sourcing from vetted suppliers with high-quality items, hotels can standardize the products that guests rely on, whether it’s food safety or room comfort. That consistency is part of the brand’s promise.
Final thoughts
Procurement in the hospitality industry is no small feat. From battling inefficiencies to managing an assembly line of new hires, the challenges can feel endless. But as Adam Butts and Jim Marinc demonstrate, the solutions are already in reach.
It starts by tackling time challenges with tools that streamline processes, ensuring users are properly trained and accountable, and creating internal champions who can support the team. Add to that a robust approach to compliance and preloaded system content, and you have a recipe for success that doesn’t just save money but elevates both operations and the guest experience.
Hotels might not win their guests over with procurement alone, but they’ll certainly lose them without it. Focus on these strategies, and you’ll keep both your teams and your guests happy. And hey, maybe even save a few dollars while you’re at it.