Case: Service Purchasing at the Sunny Hotel
Read the given case and answer to the following questions
- What makes the procurement of services different from that of the purchase of goods and materials?
- Define alternative services, or additional ones, that could be purchased by the hotel.
- Do you think a centralized purchasing department is a logical way to increase pur-chasing efficiencies? Is it an advantage to have the purchasing department manage service purchases?
- 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 the 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?
- Procurement is the process involves selection of the vendors, establishing payment terms, strategic vetting, selection, negotiation of contracts and the purchase of services. Services procurement is a strategic outsourcing of all the services that are required for delivering the final service to the customers. While purchasing is just a part of procurement process, in this process goods are purchased to provide the final service to the customers (Monczka et al. 2015).
- The additional services that the hotel can purchase are, laundry, entertainment and car rental services (Monczka et al. 2015).
- Yes, centralized departments are most appropriate way to make purchases because it helps in managing the costs. If a particular department keeps an account of all the purchases based on the requirements then there is no wastage likewise if there is a department that notes the requirements of a firm and then there are very less chances of shortage of inventory (Christopher 2016).
- No, this method is not the only method that can be used for selection of the suppliers, the methods are, supplier surveys, supplier survey is a technique in which surveys are done that include a number of questionnaires that are asked from the suppliers on which basis evaluation process is done. Another method is financial analysis which the prevents the expense of further study. The next method is third party evaluators where third party organizations do the evaluation and audit the supplies and in many cases they handle hazardous wastes (Christopher 2016).
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.