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Where Is The Future Of Hospitality Procurement Headed?

Corporate and social responsibility is definitely on the agenda for all sourcing experts and we will see more environmentally-friendly items and solutions used even in the hospitality industry.

What is the biggest change of hospitality procurement in the past year? Is there something that could have been done better?

The biggest change was to have a big switch unplanned between 50+ years of continuous and sustainable growth on a worldwide level, to 90% of our hotels closed worldwide in almost all countries with 0 turnover for months.

  • Very strong focus on costs savings & on FCF (free-cashflow) – Actions undertaken: Cost avoidance, cash postponement, renegotiations
  • Strong focus on protective items & sanitary processes
  • Solidarity with both partners and suppliers (you need a robust ecosystem to succeed in the mid-term)
  • “Consolidation” of hospitality procurement sector: Independent hotels + small / medium chains need the best conditions and partner with bigger GPOs

Now the key is to find new ways to reconquer our guests and bring them the best experiences they have missed during this 1+ year of lockdown.
We could have planned better this period but who would have anticipated this impact so strongly?

Is there a way to prepare procurement for future unpredictable circumstances?

  • More alternative sourcing solutions
  • More local solutions to be more resilient and tailored to our hotels needs and specificities
  • Diversification: One-stop shop positioning helps to mitigate risks

Where do you see the future of procurement in hospitality?

  • CSR:
    • More responsible, e.g. housekeeping
    • More environment-friendly, e.g. plastic-free items, local sourcing, reduction of carbon footprint…
  • Integrated digital ecosystems / one-stop shop
  • Hospitality GPOs will not only cover hotel customers but the whole hospitality environment (and beyond?)
  • Consulting role

 

Join Kevin at our 9th Annual Global Strategic Sourcing and Procurement Summit coming up in September 2021 where he will be delivering a very insightful presentation on Hospitality Procurement in Times of Crisis During COVID-19!


Kevin VASSOUT CARVALLO, Procurement Director Guest Techno, Energy & CAPEX at Accor is a global procurement director with 12 years of experience in indirect & technologies commodities in various sectors (automotive, telecommunications, hospitality). Strong culture on partnerships and used to work in multicultural and multilanguage environments. He is fond of tech & innovation.

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