Tell us about coronavirus’s impact on the purchase department of your hotel?
The impact was majorly on pricing, cleanliness and hygiene. The prices increased due to the spending on PPE kits for infection control. During the peak COVID-19 in Delhi, most of the suppliers denied supplying products on credit basis and the prices are on higher side approx. 30% to 40%. We have managed our supplies through our existing vendors on a credit basis. We have also briefed and educated them all the prevention measure to be taken while delivering the products to our hotel. In the existing situation, we tried to use as much local material as possible.
How has the domain of purchase changed with COVID-19 outbreak?
We had never thought we would see a period quite so transformative in the hospitality sector. The next few years will witness a much greater change in terms of how hotels operate and operator relationships could also be re-defined.
Currently, the purchase department represents a major interface between the hotel and the vendors/service providers. It has to work very closely with all the internal departments and support them in the most efficient and effective manner. The purchase managers have to actively involve themselves in the decision-making process and come up with solutions that are best suited for the organization.
Purchasing as a function continues to offer tremendous opportunities for substantial cost reduction, whichever way we look at it. Purchase stands out as the single most important area that which deserves a focused effort by the management in order to reduce the costs and improve profitability of organizations. The purchase department has to exercise effective compliance systems as a part of their day-to-day job and before finalizing any contracts or orders.
What are the various measures/ compliances initiated to save cost?
We have taken the following measures to save cost:
- Continued the same price as previous year till July -2020
- Re negotiation- Keeping this situation in mind, the price was Re-negotiate by discuss to all the partners again        Â
- Price comparisons for non- food items.
How do you identify high-risk vendors and what the protocols to deal with them?
A crucial component of the procurement process is the selection of the right supplier. A good supplier is one who, at all times, is honest and fair while dealing with customers, supplies within the promised deadline, whose financial position is sound, whose prices are reasonable both to the buyer and himself, whose management policies are progressive, who is aware to the need for continued improvement in both his products and his manufacturing process.
