Discussion Questions of Sunny Hotel

Doing so centralized responsibilities and lid strong customer-supplier relations and improved levels of customer service. Ere department managers felt this was a good decision, however they did have a few complaints and concerns. They felt purchasing personnel did not engage department heads in the source selection process and that sometimes that lead to wrong or bad selections. Discussion Questions 1 . What makes the procurement of services different from that of the purchase of odds and materials? Strategic procurement of services is crucial for the success of Sunny Hotel/Spa & Unless Resort.

The flow of goods and materials supports service management, Nile the services flow is treated as a focal point that should be properly managed by outsourcing to service companies.

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The procurement team for services at the Sunny Hotel are focused on securing service contracts from different companies, negotiating the best prices and cost minimizing, building supplier and customer relations that are mutually beneficial. Re-evaluating the performance of the service provider to see f anything needs to be updated or changed should be done periodically.

These steps an be timely and require significant time to really produce a solid system. Communication between department heads on service decisions is essential in the decision making process because gaining of services affects individual departments. , reliable and cost effective service relationships can define a company. Providing bad service by anyone at the company can seriously affect the hotels reputation.

2. Define alternative services, or additional ones, that could be purchased by the hotel. Ere current services purchased by the hotel are: Food and storage, Insurance,

Security, Cleaning, Animation, Software support, Staff Training and Delivery services. Ere following alternative or services can also be purchased: Consulting services, such as interior design or “how to manage a hotel” and Advertising and Marketing services public relations). Do you think a centralized purchasing department is a logical way to increase purchasing efficiencies? Is it an advantage to have the purchasing department manage service purchases? A centralized purchasing department is a very beneficial way to increase purchasing efficiencies.

Creating a separate department solely for purchasing goods and service agreements can be costly to the company, but I believe that the pros greatly exceed the cons. The benefits and value it will bring in to the company in the future should be a great reason alone to have a separate department. It believe that it will also increase other department productivity because departments will be able to focus on their primary Job functions and will relive that load of work that dealt with centralized purchasing. 4.

In Table 1, the Supplier Selection and Evaluation Matrix for “purchasing goods” is illustrated.

The same criteria and techniques are being used to purchase services at he Sunny Hotel. Do you think that some other distinctive criteria for the supplier selection and evaluation of service purchases are needed? If yes, please briefly define them. How would you present them to the company as a consultant? Ere current Supplier Selection and Evaluation Matrix used by the hotel for the purchasing of goods is a good on the right track.

I believe that with a few minor Changes Sunny Hotel could have some improvements. The matrix should continue Ninth the following criteria: Past performance can help in evaluating what to improve n the future, Price to make sure to always stay above the competition, Flexibility so customers want to come back, Reputation for the same reason customers like to stay Inhere they are treated right, Payment requirements is a good one because it is always great to have all available options and, Technical Support in case of any malfunctions.