Hospitality Industry

Competition in the hospitality industry is fiercer than ever. Customers are increasingly hard to please as prices, reviews and options are available at a mere touch. Industry leaders walk the tight rope of maintaining price competitiveness and delivering brand experience. Rising labor and material costs and a volatile demand scenario do not make the job easier. To make matters worse, the supply of hotels and restaurants continues to grow cutting the pie into smaller and smaller pieces.

In this pressure- cooker environment, any company that cannot manage its costs and streamline operations simply will not thrive. So it’s no wonder that procurement professionals are increasingly in the spotlight.

Large corporations rely on procurement companies to achieve higher levels of efficiency and effectiveness, while rapidly reducing their operation costs.

What is Procurement Outsourcing and how can it help your hotel or restaurant?

Procurement outsourcing is transferring specific procurement activities to a third party. In turn, a company which does so expects to increase its focus on its core operations and competencies, reduce overall costs and realize bottom line savings.

Why Outsource Procurement Activities?

Companies that outsource their procurement function can tap into a pool of experts, which can guide them in matters pertaining to the service and corresponding technologies. They can avail themselves of this collective expertise to improve their efficiency and overall performance.

Taken together, this leads to measurable cost-cutting and tangible savings. While cost reduction is the largest substantiated reason, there are other benefits as well, such as being able to focus on core operations, implementing the ideal solutions which lead to superior customer satisfaction, and potentially reducing your workforce.

What activities should be considered for procurement outsourcing?

While procurement outsourcing has mostly been limited to the transactional purchase-to-pay

process, firms can also hand over the complete category management of certain services. The

following table lists the services which many hoteliers and restaurateurs are beginning to frequently

outsource.

Service Procurement Support

Credit Card Processing

Procurement experts conduct an opportunity assessment based

on the current service contracts and then assemble solutions for

each service. Clients are informed of the findings. Service is

secured for client. On-Going Contract Management includes

random audits and contract renewal.

Cable/SAT TV Service

Telecom (Phone/Internet)

Deregulated Utilities

Payroll

Business Insurance

What are the real benefits of procurement outsourcing?

Do you have sales people calling on you all the time trying to sell you something?

Are you meeting with multiple sales people for a single service trying to secure the “best deal”?

Tired of trying to cut through the complex clutter of proposals to determine which is really the best

for your organization, if any?

A procurement service does not sell you services,

rather, they research and obtain the best solution for

your organization and then help you secure the

service. Sales reps representing a single company

have to convince you to buy from them. Procurement

companies typically have a network of vendors and

thus utilize the vendor which works best for each

particular situation. This works to the benefit of the

client as you are being presented a solution which

works for you regardless the vendor.

Among the main financial benefits of procurement

outsourcing are:

Cost Reduction

Procurement service providers bring sourcing and category expertise to areas that are not generally supported by procurement teams, leading to greater savings. They also provide on-going audit services to ensure companies are realizing the savings identified at the time of securing the service(s) with a certified preferred vendor. Lastly, by outsourcing low-dollar or low-value activities, internal procurement teams can focus far more time and effort on large, strategic deals that deliver greater savings.

Operational Efficiencies

Touchpoint’s procurement service provides operational cost advantages by saving time and freeing up your internal resources to perform higher-value tasks.

What are the other benefits of procurement outsourcing?

Procurement outsourcing also provides other strategic advantages that are equally valuable and compelling including:

Flexibility Procurement outsourcing helps your company quickly adapt to changing market needs. Your internal staff may not be able to devote the time required to research new potential solutions quickly. Third-party providers can often move more quickly and obtain the critical information needed through its network of experts to provide you the information you need to make better decisions.

Focus Your primary business is to operate your hotel and/or restaurant. Any distractions take away your focus from your core business. A procurement company can help to dramatically reduce your time commitments to non-core activities. A prime example of this is contract renewals as it is a time-consuming process.

Expertise Procurement service providers bring a significant amount of expertise (functional, industry, and category) gained from multiple clients, sectors and geographies, which a dedicated internal employee(s) at your organization can find hard to match.

As a result, they can deliver services based on best practices, market intelligence, price benchmarks, sourcing tools and contracting templates gained from working with a variety of vendors and clients.

Stakeholder Satisfaction With well-structured SLA’s and clear performance targets, procurement outsourcing partnerships can lead to improved service levels and greater overall support for your business.

About Us

With over 14 years of entrepreneurial experience in the hospitality and restaurant industries, the founders of Touchpoint decided it was time to share their knowledge and expertise with other like-minded business owners who could benefit from using a new complimentary procurement service to streamline operations and reduce expenses.

Our Mission is your Business

To use our expertise in the hospitality and restaurant industries to procure, package, and manage the best service offering bundles available for hotel / restaurant management companies and owner groups through of Certified Vendor Network (CVN).

What Does Keeping You In Front Mean To Us?

We keep our clients in front of our vendor relationships. What does that mean? It simply means that our client’s interests are first and foremost and that doing what’s in the best interest of our client’s trumps all else.

What Are You Waiting For?

“Inaction is perhaps the greatest mistake of all”

We are ready to go to work for you.

Streamline Your Administrative Operations Ensure You Receive Optimal Solutions at Optimal Pricing Levels Annual Contract Management, Negotiation, and Maintenance Our Certified Vendor Network Ensures a High-Level of Service

►Call today Start saving money, time and trouble. Before you renew your next services contract, call us to make sure you’re getting the best deal possible.

Office: 734/217-4790 Fax: 734/217-4661 Email: info@touch-pt.com