Hospitality Industry Suppliers

• This topic focuses on suppliers used in the hospitality industry, products and services purchased from suppliers, operational requirements relating to the selection and use of suppliers and sources of information and resources, in relation to suppliers, services, and products.

Suppliers Used In The Hospitality Industry

• Providing a range of hospitality products and services to clients is a key part of any hospitality agent's role.
• A role will be to deal with a range of different suppliers of hospitality products and services and then present options to managers to provide the most suitable for the clients.
• When compiling supplier information for product knowledge data bases, the different types of businesses/suppliers in which potential customers may use should be identified.
• Identifying commonly used hospitality industry providers enables gathering information relating to the products and services they provide.
• Ensures the information is accurate and up to date.

Types of Suppliers Used In The Hospitality Industry:

• Supplier: another industry business that sells products to the hospitality industry.
• 'Products' could mean beds for a bedroom, wine for a bar, or food ingredients for chefs to prepare and cook.
• Wholesaler: buys stock in large quantities, from the source and then sells on to retailers or delivers to hospitality businesses.
• Wholesalers have a large choice of products and are usually the cheapest place to buy from because you 'buy in bulk'.
• Most wholesalers give credit and offer a reliable service and consistency of product.
• Retailers: buy goods in bulk from wholesalers, then sell on to consumers in smaller quantities, at a higher price.
• Retailers sell from conveniently located shops and stores and they sell a very large range of products.
• Some retailers offer 'home delivery' which hospitality businesses could use too, but you cannot 'buy in bulk' and there are no credit facilities.
• Retailers are also reliable and have a consistency of product.
• Cash and Carry shops trade in a similar way to wholesalers, but they operate large stores which are open to the general public, although you may need to register as a member.
• Products are cheap because people can 'buy in bulk', but they have to pay for goods there and then and customers have to collect goods themselves which could mean a long journey.
• There is usually a fairly wide choice of products and consistency is not a problem
• Daily Market (food markets) are a collection of stalls, where stallholders (often the producers themselves) sell their produce to the general public.
• Specialist items are often available, as well as basic items such as fruit and vegetables.
• Markets can be good value for money, but can never be as cheap as buying in bulk from a large wholesaler.
• Many chefs of small restaurants like to shop at food markets so they can choose their own produce and write a menu accordingly.
• Markets do not deliver and you have to pay cash (in many cases).
• Reliability can be a problem if a market trader does not turn up, or does not have what you are looking for.
• Specialist Suppliers sell unique goods and produce that may not be available from anywhere else.
• They are usually a lot more expensive because they are selling specialized items Reliability and consistency are excellent, and most specialist suppliers deliver, although you can also collect yourself.
• Delivery may not be frequent
• Credit is usually available to businesses, but the general public would have to pay there and then.
• Company Nominated Supplier: A business's main or preferred supplier.
• Hospitality business will have a contract to use that supplier for a set period of time as good for the supplier because they have regular custom.
• Good for the hospitality business because they can negotiate lower prices and an account will be set up so you can 'buy on credit'.

Products and Services Purchased from Suppliers

• Endless suppliers in the hospitality industry that can be sought when identifying products and services to potential customers.
• The supplier is the actual provider of products and services, whilst in other cases, such as wholesalers, they may be intermediaries who coordinate services by end suppliers.

Common Products and Services Purchased from Suppliers:

• Food and Beverages: Kitchen tools, equipment and machines, raw and/or fresh ingredients, baked and/or cooked products, alcoholic and non-alcoholic beverages, consultants and workers, and technology (POS System).
• Travel and Tourism: Flights, car hire, transfers, accommodation, workshops, exhibitions, functions and events, and insurance.
• Lodging: Paper products, cleaning, printing, consultants, promotional materials, design renovations construction, photography, security, furniture fixtures and equipment, technology, maintenance, telecommunications, and linens.
• Recreation: Entertainment, tours, cruises, and entrances to attractions and sites.
• Spa services
• All products and services booked, via a supplier or operator, are generally confirmed verbally and subsequently in writing via a booking confirmation advice.
• Booking confirmations will vary in type, content, and format depending on the supplier or operator and the specific product and services.

Operational Requirements Relating to the Selection and Use of Suppliers:

• Reliability: The number of working years in the hospitality sector, positive recommendations about the supplier, ability to meet delivery quantities & due dates, compliance with packaging requirements, the supplier's reputation in the industry, and financial stability and staying power.

• Quality: ISO certification (9001, etc.), process control capability, corrective and preventive action system, past quality experience with supplier, and compliance with delivery standards.

• Price-Cost: Ordering cost, transportation cost, net price of the final product, maintenance and repair cost, and flexible payment terms.

• Communication and Relations: Sales force product knowledge, ability to solve the quality problems, flexible contract conditions, communication capability, order receiving system of the supplier, and past and current relationship with supplier.

• Sustainability: Environmental policy of the supplier, ISO 14001 certification, recycling policy of the supplier, education status of the employee, employee workplace safety and training, and social responsibility.

• Service Quality: Customer satisfaction, product line diversity, ability to respond to unexpected demand, after-sales service and technical support availability for the products.

• Technology: Information systems and storage systems.