Procurement

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Procurement

The role of procurement is key, in hospitality. Procurement has to do with the purchasing of goods and services for hotel. There is a difference between purchasing and procurement:

• purchasing is focusing on short-term goals: like having a transaction 'right'
  • right quality, right quantity, right cost, right time, and right place

* procurement is focuses on strategic, long-term goals like gaining a competitive advantage or aligning itself with corporate strategy. The process has to do with ordering the goods once vendors have been put in place by the procurement department.

Procurement principels

The procurement system includes responsibilities like:

• defining he sources for materials
• contract negotiation
• payment terms
• life time of specific assets, stock and even services (related to the more economical depreciation.

Links to ESG

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Emerald Forest Hotel offering an emerald hotel experience! | Run your own hotel in this management simulation.