In all the hospitality industries there is involvement of purchasing in one way or another. We consider a Marriott whereby an attendant ought to keep inventories of the products like water and soft drinks so that they can know how much they would request for restocking.The managers of Marriott will wish to get a laundry detergent at a reasonable price and in the best amounts.
The accountants ought to know the company’s agreements in purchasing so that they can take advantage of the discounts if they make payments on time. These are some of the case where the hospitality plays a role in the Marriott industry. Therefore it is easy to note that purchasing pays a key role in the hospitality industry in general.
Purchasing to many people may just mean paying for an item or service although this is very restrictive in the hospitality because it does not convey all the processes involved in the buying process. Selection and procurement better portrays the processes involved in the purchasing process. Selection can be defined as the choosing from among diverse alternatives on a number of different varieties. These may be selection from different brand of products.
Procurement unlike selection is an orderly and systematic exchange between the buyer and the seller it is the process of getting goods and services including all the activities associated with the goods determination, purchasing, receiving and storage of goods and the contract administration. Procurement is very essential when someone wants to purchase something.
Once the buyers determine what they want they identify the suppliers who will satisfy their needs. The buyers then start ordering the right amounts of products or the services at the appropriate times and at the best prices. They then ensure that the shipment of the products is done at the right time; they also ensure that the products which are delivered meet the requirement of the company.
Some of the duties that relate to these operations which are carried out include the following: checking out for new products and new ideas, learning the needs of production for the departments that they serve; evaluating whether the suppliers are reliable and identification of new technologies involved in the procurement process.
Some operations do not have full-time buyers. Many have managers and supervisors who engage in the buying in addition to their designated duties. To the managers and supervisors buying means has more meaning than what procurement calls for. The employees need to know that relationships that underlie between the purchasing and the other activities in the operations of the hospitality.
Due to the scarcity of the full-time purchasing agents in the hospitality industry the literature therein existing will not restrict the managers and supervisors operations. For instance, it is unsatisfactory to just know how to procure beef. A true operating manager should consider the type of beef to be purchased and also be able to determine whether or not the beef itself need to be in the menu.
The managers in the operations are obliged to also deal with technology that has improved the way the buyers and suppliers procure their goods and services. This technology enables the managers involved in the purchasing to finish complex procurement functions by just making a few clicks in the mouse. These functions mostly take place over the internet.
The transactions that are done using the electronic technology are commonly referred to as e-commerce a short form for electronic commerce.
B2B e-commerce is a term used for electronic transactions which involve one business to another.
B2C e-commerce is a transaction that involves business to consumer e-commerce. For example Amazon.com makes use of the B2C e-commerce for sale of its products to their consumers.The B2B e-commerce focusing specifically on procurement activities is referred to as e-procurement for electronic procurement.
The companies making use of these technologies have successfully changed the way procurement is done by making use of the power of the internet.This application of technology in the purchasing and distribution of products and service has been utilized widely. The utilization of these technologies has been used due to various reasons which include creation of awareness in the consumers of the products about the products which are available for them in the market.
This has made it to be cheaper to make purchase distribution in the business.Technology has been used in the Marriott to make reservation for the clients who wish to use the company’s facility for any function. Through this the managers get to know the numbers of people who wish to come to the country to use the facility.
Use of internet has made it easier for the advertisement of products and services by companies. This makes it easier for those interested clients to get to learn more in the industry. They also learn about the product and services which they why then should from the variety.
Feinstein, A.H. & Stefanelli, J.M. (2008) Purchasing: Selection and procurement for the hospitality industry 7th Ed. USA: John Wiley & Sons Publishers