The need for HPMF is in bringing together the purchase heads of hotels on one platform to network, explore new aspects of purchasing and gather knowledge of the advantages of technology in purchase. This would enhance the performance of the purchase heads and make work less stressful.
Discussions focussed on Value Engineering which increases the lifecycle of products and savings too. Speaking to one of the panelists, Kaushik Jhingan explained that it is only through value engineering purchase can reduce both initial and operational costs. “It is important to take the total operating cost to determine the lifecycle cost. For example, take a cleaning equipment, the life of the product is described by the OEM at the time of buying.
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Whether it will last five or six years or more or even less depends on the maintenance.” Having said that, a major question at still needs to be addressed is whether the purchase heads while doing the analysis are calculating the savings made on the extended lifecycle which adds to the bottom line?
“If a product lifecycle has been determined for five years and runs for seven years and still can run more provided it does not increase the operations costs, is an addition to the bottom line. However, like many other industries face the same situation, it is essential to have a three-way equation by working in tandem with all the user departments, the purchase and the OEM,” he added.
The session on Vendor Relationship and Strategic Sourcing emphasized on the need to engage with manufacturers to encourage them to develop customized quality products. However, panelists cautioned on the selection of vendors only after doing a thorough research on the background, financial credentials and timely delivery. Such practices will ensue vendor development and enable to raise the bar of the vendor. For example, a milk supplier can be encouraged into supplying cheese and other milk products over the years. This way, purchase can take care of at least 70% locally.
Another interesting panel discussion on strategies and future of procurement in hospitality agreed upon digitalization of processes. Amid serious talks, the intermittent booster doze of motivational talk enthused the professionals. These also included the Work life balance presented by Jaideep Gupta, Your Attitude Your Success by Pankaj Mehta, Digital Transformation by Ayman Sheet and Mynd Storm by Pradip Almadi.
