Procurement

Through our procurement company, we word with international out-fitting and furnishing companies to fit-out & furnish hotels, in-flight caterers, restaurants & Events & Conference Centers.

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    Why owners choose nashwan group?

    Nashwan Group’s Procurement services assure that we source materials and products fit and appropriate for establishments; from hotels to conference center needs. Our preferences and recommendations provide clients with materials suitable to run top tier establishments.

    We lay out proposals, inspections, and quality assurance checks to guarantee that all aspects are looked into, and urgently address those that need to be replaced or re-branded. We give our clients the convenience and security through negotiating the best deals tantamount to cost and time efficiency.
    With Nashwan Group’s procurement company, we guarantee that the products and materials from sets of furniture all the way to the bathrobes, are manufactured with the utmost in quality control. Not only do we look closely into cost and quality, but we also make sure that we fit-out those that are applicable and are market-competitive when it comes to target guests’ satisfaction and and preference. 

    Let’s examine seven problems the hospitality industry had and how they were resolved through membership in a purchasing program:

    1. Blind Spots

    Problem: Very few hospitality companies had visibility into their procurement operations because purchasing data was simply not captured.

    Solution: Since purchasing programs are so data-focused, joining one allowed access to robust reporting and insightful data dashboards. This meant hotels were able to get the customized information they needed and wanted, all without draining their resources.

    2. Limited Resources, Limited Rewards

    Problem: Companies needed to constantly negotiate with vendors to get the best price, but they often didn’t have the personnel for this resource-intensive endeavor.

    Solution: By combining the purchasing volume of many companies in one collective, each business benefited by receiving the best possible price. This set-up also freed suppliers from having constant negotiations, so they had more resources to devote to getting orders out quickly and accurately.


    3. No Volume Control

    Problem: When you work for a single hotel vs. a chain, the only way to get better prices is to increase your purchasing volume by growing your business. As a result, a company that’s not growing gets hit with a double-whammy: stagnant growth and static—or even higher—prices at a time when the business can least afford it.

    Solution: Hotels found that one of the advantages of a purchasing program is that they could always add other hospitality businesses to the collective in order to procure a higher volume at a better price—so if one (or even all) hotel was facing setbacks, pricing needn’t suffer.

    4. Order Disasters

    Problem: Maintenance, repair, and operations (MRO) orders were notorious for being imperfect and the hospitality industry was no different. For example, missing items and unapproved, often unwelcome substitutions occurred constantly.

    Solution: When hotels joined forces in a collective, they found that purchasing programs solved this problem by tying supplier compensation to accurate and efficient order fulfillment. Problem solved!

    5. Communication Mishaps

    Problem: Let’s face it. Most suppliers didn’t get into the business because they excelled at customer service and communication. They did their best when they could focus their energies on fulfilling orders.

    Solution: Purchasing programs served as a bridge or intermediary between vendors and customers, meaning they facilitate communication. This helped the supplier’s customers better manage inventory and expectations and kept relationships between the suppliers and customers strong. For example, rushing a huge, unexpected order for a customer could deplete supplies for others. Suppliers typically did not have the bandwidth to balance orders, but purchasing programs’ built-in customer service helped to manage these orders and ensure all were filled in a timely fashion.

    6. Fear of Collaboration

    Problem: At first glance, collaborating with competitors in their own industry felt strange and even dangerous. When Avendra, the leading purchasing program in the hospitality industry, was first formed in 2001, many hotel executives were wary—and some flatly refused to join.

    Solution: The executives who discerned the potential advantages and overcame their fears realized tremendous savings for their hotels when they joined. (As a note, purchasing programs are set up in a way that protects each hotel’s proprietary data with NDAs and agreements.) Now purchasing programs are accepted and even embraced throughout the hotel industry.

    7. Focusing on Weaknesses Instead of Strengths

    Problem: Even though most hospitality companies realized that procurement was not their area of expertise, a pre-purchasing program industry meant there wasn’t much in the way of choice. Hotels still had to devote time to procurement, even though that wasn’t an area that truly differentiated their businesses.

    Solution: Many hotels took the money saved through purchasing programs and used it to better train their employees to become masters in their areas of expertise (e.g., service). As a result, they were spending more time and dollars on brand building efforts.
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