News Home / News / 6 Secrets to Managing Supply Chain Costs OCTOBER 15, 2018 6 Secrets to Managing Supply Chain Costs By Angela Eberhart, Vice President of Account Management Strategic Accounts, Avendra. Published in Stay Boutique. In the boutique and lifestyle industry, balancing priorities such as guest satisfaction with costs is constantly top-of-mind. Whether you’re responsible for the overall purchasing strategy of a luxury hotel or the day-to-day buying decisions of an intimate boutique property, you can continuously challenge yourself to do more to protect your bottom line while still providing a unique boutique experience and quality products your guests will love. Here are six secrets to managing costs in your supply chain. These methods are effective and straightforward. The key is checking in on each of them, staying current on market prices and following up with your teams to ensure implementation and coordination. 1. Stay Up-to-Date on Pricing Changes and Market Dynamics To understand the factors influencing pricing, it’s important to follow trends in the global economy. Tracking price fluctuations is one way to start lowering your costs. Understanding supply and demand, as well as seasonality, is another; it’s essential for every product in your pipeline. It’s also worth tracking some specific ingredients even more closely. For example, the price of meat can vary widely depending on the type of protein and the specific month. So, while you may serve filet mignon year-round, knowing when those higher costs kick in should prompt you to place a large order, adjust your menu pricing or vary the portion size to maintain profitability. 2. Consider Alternate Brands and Suppliers While a strong relationship with your suppliers is critical, never be shy about making changes to the products you currently use— rotating in new items can quickly and dramatically reduce your costs. Of course, you may have relationships with some suppliers that you don’t want to disrupt. You may also have products that you know your guests love—items too valuable to your operation to consider changing. Identifying other opportunities; alternate suppliers may offer more benefits, better products and lower costs. 3. Carefully Plan the Timing of Your Orders The timing of orders can make an enormous difference in your bottom line. Allowing plenty of lead time for your order can help ensure availability, along with reducing the stress of not having a product available. Talk to your suppliers—they may offer discounts during specific times of the year, due to seasonality or lower demand. Capitalize on that, even if it’s far in advance. If you expect prices to jump on essential products, order them now. Similarly, try to avoid letting the fiscal month/year drive when you order. The end of the fiscal year often brings an increase in spending to “use up” the budget, then spending again when money becomes available. Instead, be proactive in your planning. Suppliers are more likely to work with you to achieve cost savings if you are proactive. Remember: unexpected hurdles can impact your order— so the earlier you begin the process, the easier it is to jump those hurdles. CLICK HERE TO READ FULL ARTICLE Facebook Twitter LinkedIn E-Mail Previous Next IN THIS SECTION Company News Events Leadership Corporate Social Responsibility Careers Community Engagement Job Listings RECENT POSTS Best Practices to Help Improve Short-Term Challenges from MFD Supply Chain Delays September 24, 2021 Road to Recovery: Plan for 6 Major U.S. Supply Chain Impacts to Keep Your Operations on Track June 10, 2021 CURATOR HOTEL & RESORT COLLECTION PARTNERS WITH AVENDRA FOR PROCUREMENT SERVICES April 8, 2021 AAHOA Industry Partners Share Perspectives on Guest Satisfaction February 25, 2021 Top 3 Ways to Manage Food Costs During COVID February 18, 2021 ARCHIVES September 2021 June 2021 April 2021 February 2021 January 2021 December 2020 October 2020 September 2020 August 2020 May 2020 March 2020 November 2019 September 2019 June 2019 December 2018 November 2018 October 2018 September 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 January 2017 December 2016 November 2016 October 2016 September 2016 August 2016 July 2016 June 2016 May 2016 April 2016 March 2016 February 2016 January 2016 September 2015 July 2015 June 2015 May 2015 April 2015 March 2015 Building a legacy of industry leadership Avendra is North America’s leading hospitality procurement services provider. Our supply chain management solutions are tailored to our clients’ business strategies and deliver benefits beyond great savings. We combine years of hospitality expertise, purchasing power, services and software to help customers impact the bottom line, improve operational performance, and better serve guests. More than 8,500 customers rely on Avendra as a trusted partner. Avendra is headquartered in Rockville, Maryland and has regional offices throughout North America. Headquarters Avendra, LLC 540 Gaither Road, Suite 200 Rockville, MD 20850 1-866-AVENDRA (283-6372) Follow Us Copyright © 2021 Avendra, LLC. Privacy Policy Terms of Use Part of Avendra Group