Samir Jha, Materials Manager, Hyatt Centric Chandigarh

How has the approach to purchasing products and sourcing products for hotels changed over the years? How has the pandemic affected and changed it?

In 2020, at the onset of the pandemic, we have faced many challenges due to the widespread lockdown of the economy. The hotel industry in particular suffered quite a lot, not only in terms of the consumers at the hotel itself, but also for the vendors and suppliers: battling head on which issues such as delays in payment, shortage of supplies, non-availability of products and restriction on transportation services due to inter-state government mandates. These huge challenges in sourcing, and then of course the panic buying prompted due to scarcity of supplies led to a short-term strike in demand for many long-life goods and products.

The way these hurdles hindered my ability to close favorable purchase for the company and reduce acquisition costs led managers such as myself to come up with various new strategies and approaches that would aid to do the job well. Planning for at least 3 months stock in advance, storing goods at the right price and in right time allowed us to survive and adapt in a very trying time. This was only possible because of closely studying the market to identify present and future price trends; tracking availability of materials and goods and locating vendors with good relations in the market to work towards negotiated prices in the time of need.

Are there any online solutions, portals, or consultants you prefer while making purchases for the hotel?

Nowadays, searching for desired products is very convenient with the advent of various online tools and social networking. Websites and applications such as JUST DIAL, INDIA MART, AMAZON, BLINKIT, BIG BASKET and JIO MART are just a few out of many tools available to find the product at best rates. However, knowledgeable purchase managers are well aware of the challenges these tools have, since large orders cannot be purchased from these websites. In any case, if we find better rates through our relations in the market, we may go ahead with those following proper approvals and documentation.

How do you look for new vendors and are you open to changing vendors for the regular requirements?

The Chandigarh market, when compared with other metropolitan and Tier II counterparts, is a very small setup. Most of the items are easily available with limited sources/suppliers. Majorly due to this reason, the vendors tend to quote prices with big margins, however with appropriate knowledge of the overall market through continuous surveys, and competitive rates of products, it is possible for purchase to get best rates.

What protocol (method of vendor search, registration etc) do you follow for purchasing?

The key to a progressive Vendor Development Program is keeping in mind the 4 principles of purchasing: the right quantity, the right price, the right place, at the right time. Once these criteria are met, it becomes a must for each company to develop fruitful relationships with local vendors by training them and educating them to work according to Hotel SOPs and in keeping with government norms, which is accompanied with proper guidance from Purchase Managers at all times.