What is the most crucial part of purchasing in today’s dynamic market scenario?
Today, effective purchase management and procurement play an indispensable role in the hospitality industry as they determine the ratio of profitability that a hotel can achieve in the fast-growing and competitive market. Securing a high quality of produce at the right price, and within the set time of delivery is an essential part of purchasing. The efficient sourcing of ingredients, equipment, products and more on a daily basis allows our 171-room luxury boutique hotel and 5 exquisite F&B dining outlets to operate effectively on a daily basis. As a company, at Hilton Mumbai International Airport, we follow sustainable sourcing of food products and in consultation with the Executive Chef of the hotel, procure fresh and local produce to help support local vendors.
What vendor compliance systems did you initiate for cost savings?
Every year we initiate a bidding process for our vendors. All biddings are evaluated with the user departments and price negotiations are carried out with the feedback of our Director of Finance. The idea is to fetch the best price of the sourced product and services in the market. Before we initiate business association with any vendor, we check vendor compliance with necessary on-boarding documentations.
How do you identify high risk vendors? What are the various measure and procedures introduced to deal with this?
High risk vendors are those who could cause financial damages, directly or indirectly. Some of the vendors under this classification are elevator contractors, façade cleaners and similar. We ensure that these suppliers follow safety measures at all times while performing their duties. Also, the vendors are required to undertake a public liability policy covering and including our hotel premises.
How has the domain of purchase changed over the years? Do the purchase managers have to develop certain skills today?
Purchasing or sourcing is an art, and encompasses the complete market dynamics cycle that continuously changes with time. For example, with new guidelines on eradication of ‘Single Use Plastic’, the hotel has come up with innovative plans to ensure our work operations do not suffer and we are well within the legal framework.
How do you train your team to follow procedures for smooth coordination in supply chain management?
Consistent training and requirement to follow the set Standard Operating Procedures (SOPs) are the key to success of the purchase operations. We regularly conduct refresher training with all the team members and explain to them the importance of their roles and responsibilities. The best practises from Hilton hotels from around the world are constantly shared with the team.
Do you use any kind of app or technology for purchase? Kindly tell us about the technology in detail.
We follow an inventory management package, which is designed to guide the team on minimum stock, reorder level, and similar parameters so that timely orders can be placed. This software also guides us on food and beverage costs monitoring on a daily basis, to keep a tab on cost rationalization. along with excise compliances with respect to liquor stock.
