As the busy summer travel season winds down, now is a great time to evaluate your supply inventory and procurement processes. Keeping a well-maintained inventory of supplies ensures that you're always prepared to meet your guests' needs without delay. This not only enhances the guest experience but alleviates the stress that comes with trying to secure essential hotel supplies last-minute.
When you’re managing a broad assortment of hotel supplies that span both FF&E and OS&E, the balance between price and quality can be difficult to manage and have broad impacts on your operating costs and guest experience.
The challenge is determining when quality over price matters most. Switching from a premium product to one at a lower price point that proves to be unpopular with guests may lead to a higher volume of negative guest reviews. The lower-priced item may save you money today but cost you exponentially in the long run. That may require you to increase your supply budget, which research from Walmart Business reveals is common for business owners and operators across many industries in 2024.
Earlier this year, Walmart Business commissioned industry research firm, Morning Consult, to survey 500 U.S. business owners and operators about their supply budget management practices. The study revealed that most plan to increase their supply budgets this year, with 66 percent citing rising prices as the main factor impacting their budget size.
The survey also found that the majority (80 percent) of owners and operators maintain an inventory that will last one to three months or longer. Only 19 percent maintain minimal inventory and order supplies as needed, typically purchasing just enough to last a few weeks or less.
Many hoteliers take a similar approach, typically purchasing food and guest room items on more of a weekly basis and stocking items like office and maintenance supplies for longer periods of time.
No matter your approach when purchasing items, choosing vendors that offer a reliable supply chain and more flexibility in how and where you purchase items that meet your specific timing needs is important. Consider things like the ability to have items shipped when you have time to wait and options for securing items faster when needed urgently, like when you discover you’re running low on milk, bread and bananas and your guest breakfast starts in an hour. Having the items you need when you need them, plus the ability to restock when needed, will help ensure you deliver a consistent and high-quality guest experience.
Consider other ways to save time and money with supply management and buying. Are you or your team spending too much time on manual tasks that are often prone to errors, like using spreadsheets to keep track of stock and place orders? Try services that automate those tasks to help streamline operations, ensure accuracy and reduce the costs associated with inventory management. Over one-third (38 percent) of the Walmart Business survey respondents said subscription services are a very important or important factor in their purchasing decisions.
Look for vendors that offer tools to help you proactively manage your inventory and make your hotel operations run smoother. Consider platforms that can help you track expenses, so you manage your budget effectively and ensure that funds are allocated in a way that benefits your guests most. Plus, that will free up time for you and your staff to focus on the most important part of your hotel—your customers.
Taking the time to get your supply inventory and procurement processes in top shape can make a difference in both guest happiness and your bottom line. This means being smart about what you buy, how much you pay for it,and ensuring that you’re giving your guests what they really want.
At the end of the day, it's all about giving your guests a great experience while keeping costs down. So, as the summer rush slows down, take a moment to check out your supply strategies and see where you could improve things for even better results.
Robien Christie is the director of program management at Walmart Business.