Re-innovation and power through hospitality procurement, 12 musts.

Re-innovation and power through hospitality procurement, 12 musts.

Throughout the years of consulting we have noticed a dramatic shift within hospitality from procurement to purchasing. Purchasing is merely the process of how goods and services are ordered, whilst Procurement includes strategy, sourcing and selection of goods and services that are key to the overall success of the company. Without a proper procurement process, purchasing will not optimize results in line with the company goals and vision.

12 Musts

In the year of procurement through the daughter company Design Hotel Supplies, I would like to recommend taking the following points and values into consideration to ensure a successful and profitable organization.

  1. Recognize and understand stakeholders. Designers, constructors, hotel operators and vendors all have their own views. Understand and define them well, and a platform for the procurement is created.

  2. Transparency. Make the process known internally, people will be affected by the change of services, products or offerings. Involving members of the team will not only give additional ideas, but also eliminate existing challenges.

  3. Finance. The role is often automatically a part of the finance team, this is a potential block for innovation. It’s not just a cost operations it most certainly need to create revenues. Ensure however that within the team, a smart and innovative finance member is installed.

  4. Statistics & Analytics. Yes, there we go again, understanding statistics internally and externally will give not only pricing opportunity but also negotiating power.

  5. Risk. Every procurement process needs a risk analysis, not only vendors, timelines, but also product lines, and even the entire supply chain can fail dramatically.

  6. Innovation. Looking at other industries, we can learn how and what they are doing or planning to do in the market space. This can result in new services, products and processes.

  7. Re-innovate. Through learning and taking calculated risks, you are able to change existing process and supply, doing things differently and better.

  8. Distribution. Ensure the team is strong enough and able to negotiate and challenge the ever so old fashioned way products are distributed globally.

  9. Trends. Following them or setting them will result in potentially a new offering to stand out from competition.

  10. Collaborate. You are not alone, many others are going through the same challenges and process. Learn from others, join teams that occupy themselves with innovation, creation of ideas, procurement, purchasing and much more.

  11. Technology. Use the tools that are available worldwide to make not only processes easier and shorter but also create shortcuts for future amendments.

  12. Marketing. Finally, every service and product is marketable in their own way. Let the specialist create a story around the product, brand or service to create yet another opportunity to stand out and be remembered by your customer.

Don’t be fooled by the power or procurement. It is a key role in the success of any company. More inspiration and thoughts can be found on

About the Author

Jeroen Gulickx is a well-traveled hospitality professional with two business degrees and extensive experience within the hotel-and-spa segment.

The main capabilities vary from streamlining cost and operational models to strategy yielding, business development, and marketing and digital marketing.

In 2006, he started Mocinno International, a hospitality consulting company that now has offices and representation in seven countries in Europe, USA, Middle East, Asia, and Russia. The team is focused on delivering incremental revenues for hotels and spas and also develops and strategizes hotel suppliers, using mainly the Six Sigma methodology.

Mocinno International works with a network of highly experienced, energetic, and innovative people based in key locations. The team also leads client or Mocinno-originated projects or concepts.

Jeroen shares his over 20 years of industry knowledge through his blog, and other social media, and speaks in travel, marketing, innovation, or strategy related forums.

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