Where are Your Supply Chain Issues?
7 Steps to Protect Your Hotel and/or Company.
We’ve heard about supply chain issues. What does it mean?
Simply stated. Products and services you rely on, personally or in business aren’t available. Or only available in smaller quantities than normal. Or at much higher prices. Or at certain times of the day, week or month.
Couple examples
Talked to local florist. They have been buying most of flowers they sell from Trader Joes. Turns out they have better selection of flowers than wholesale florists. At lower prices. Florist cut a contract with Trader Joe’s to provide select flowers and quantities weekly. At guaranteed price for next 6 months. Wholesale florist was always out of some flowers they needed.
Can Trader Joe’s have supply issues? Of course, but less likely than flower wholesaler they have been using.Talked to Resort Executive Housekeeper who has inked contracts with all their laundry vendors, dry cleaning company they use, and supplier of their vacuums. Her biggest concern? Were her vendors going to be supplied by their vendors.
Talked to Corporate Director of Purchasing and Supply Logistics. Asked him for suggestions.
His 7 steps to reduce Supply Chain issues
List all critical supplies Who are vendors providing them? How tight is your contract? What are penalties if they can’t deliver.
Have at least 3 alternative vendors for critical supplies. (He has split lot of their contracts between several major suppliers. Purpose: Establish relationships.
Work with each hotel and restaurant to identify supplies that they can get locally. Who are retail vendors they would use. Sam’s Club, Walmart, Costco, Staples, Walgreens, Office Depot or Max, Home Depot, Loews, etc. How about plumbers, electricians, disposal companies, or roofers? Will any of those cut a contract to provide better prices and guaranteed availability.
Do Hotels have few critical supplies, that have price increases every couple months. Price increases to make it worth while to carry 6 month inventory?
Identify and talk with alternative service companies, like plumbers, etc. Try to have 3. Be sure to actually check references. Don’t just accept internet endorsements.
He encourages each property to start reading about coming products and services.
To meet with competitors to see if they can pool orders to get better prices and assure they are higher on the vendors supply chain list. Added benefit: Identifies potential employees at competing properties.
He indicated there are more things that can be done. His mission: To cover Critical needs of hotels and company. Not all needs. Everyone has their normal jobs to do.
His surprise benefit? Hotels appreciated being included in the decision process. They started to see benefits coming from corporate they never knew about. GM’s started telling owners what they were doing to protect their asset.
Your CTA. Great topic for staff meetings. Ask Department to put together their list of 7.
Gives employees:
something different to think about
that will benefit hotel and
their jobs, while
enhancing their career skill set.
Corporate Director indicated it has been win-win. Employees in every Department appreciate hearing what company is doing to protect their jobs. There actually are contingent plans.
Have any thoughts you would like to share? Email [email protected]