In 1995 Mr. and Mrs Gunes, proprietors of the Sunny Hotel/Spa and health Resort established the Hotel as a household owned concern in Izmir Turkey. The Hotel has grown at a really high rate of 200 % during 2000 to 2006.
The proprietors of the Hotel, Mr. and Mrs Gunes said that secrete of their success is:
“ We believe that we have a different point of position than that of our rivals. Our focal point is on our nucleus competence in supplying hotel direction services. Although it can be hard to find one ‘s nucleus competences and boundaries of a company in the touristry sector, success of the concern endeavor depends on this point. Functions that are non in one ‘s nucleus competences should be examined for outsourcing to other houses. Recently the Sunny Hotel ‘s proprietors have thought about outsourcing critical services. The touristry sector has been quickly spread outing the flow of hotel direction services ; this flow has become more important than the stuffs flow direction for us. ”
They besides believes that, in Tourism sector flow of stuffs supports service direction but focal point of this sector is pull offing the flow of services.
In 2005 Mr Murat Var hired as a purchase director in the Hotel. Mr Murat has an undergraduate and Masters Degree in concern with six old ages of working experience as a purchase director in a transnational hotel concatenation. Very shortly after fall ining of Mr. Var, Sunny Hotel has become as the market leader. Interestingly at that clip rivals of Sunny hotel was confronting jobs in their services. The abilities of the Mr. Var can be guessed from his public presentation during that period.
Mr Murat Var did some organisational alterations after fall ining the hotel as a purchase director. He separated the purchase of goods and services. He states that “ The chance to increase net incomes in an organisation through more effectual buying and supply direction is greater in the acquisition of services than in goods ” .
Before Mr Var, the buying section of the Hotel was merely concentrating on the supply of goods and stuffs, some services were besides outsourced by related section straight. Accounting and finance section were covering the insurance and package support services and staff preparation service were arranged by Human Resources section.
Mr Murat Var consolidated the buying of services and stuffs under buying section. He is working with eight other buying experts. The centralised buying section has the duty of procurance of services, goods and stuffs.
New Centralized buying section is working for the Hotel, 30 % of buying cost is reduced and besides the client satisfaction degree is improved. Still some jobs rose up in acceptance of the amalgamate system, like the section caputs are non satisfied with their part in the buying of services and goods, and supplier choice and rating procedure has besides some jobs.
DIFFERENCE IN PROCUREMENT OF SERVICES AND PURCHASE OF GOODS AND MATERIALS
Term buying used in British, Chartered Institute of Purchasing and Supply and the American, National Association of Buying Agents may be defined as, the map responsible for obtaining by purchase, rental or other legal agencies, equipment, stuffs, constituents, providers and services required by an project for usage in production or resale. ( Lysons, 2000 )
Buying and supply concatenation direction, 4th edi definition Pp.1
Procurement is a wider term than buying which implies the acquisition of goods or services in return for a pecuniary or tantamount payment. Procurement is purely, a more accurate term, it is unsurprising that the word procurance is frequently supplant buying in occupation rubrics, such as procurance directors, procurance agents and caput of procurance. ( Lysons, 2006 )
Buying and supply concatenation direction 6th edi definition Pp.6
Procurement of services and goods
It is the procedure of identifying, measuring, and geting different services and goods which are indispensable for the operations of a concern. Procurement of services and goods can be done by utilizing in house resources or by a procurance system or through advisers. The end of procurance of services and goods is to derive the highest quality concern services and stuffs at sensible monetary value. Procurement of services and goods is different from each other because of the features of services and goods/Materials.
( hypertext transfer protocol: //www.wisegeek.com/what-is-services-procurement.htm )
Features of Services and goods which makes their procurement different:
Servicess have high client and human interaction while goods have really low in comparing. Servicess can be customized but standardisation of the services is non possible in two different topographic points.
Servicess are intangible, can non be touched, looked and tested nevertheless goods and stuffs are physical in form, which can be seen and touched. Servicess can non be returned or resold as compared to goods. Servicess procured are perishable, can non be stored for future utilizations. On the other manus goods can be stored in monolithic measure for future demands and they can besides be transported from one topographic point to another.
Measurement of services is non possible in measure, still services can be measured in quality. Where as goods can be measured in measure. Production and ingestion of goods is non done at same clip while services normally are provided for a short clip and consumed at same clip.
Physical review of goods is needed to guarantee the quality before bringing but in instance of services it is non possible to judge the quality of service during serving.
Features of Services and goods are about opposite to each other. So these features make both types of procurances different. In Sunny Hotel the emphasis is on procurance of services and from features it is understood that the service procurance is more complicated.
Principals of supply concatenation direction, wisner, pp 39-40
Buying and supply concatenation direction 4th edi definition Pp.10-11
Buying and supply concatenation direction 6th edi definition Pp.3-9
Alternative services which hotel can outsource
Presently the direction of Sunny Hotel is outsourcing Security, Cleaning, Animation, Insurance, Software support, Staff preparation and Food storage & A ; bringing services. In add-on to these services Hotel direction can add values to their services by outsourcing these services given below.
Provision of medical service is really of import for clients who visit the Hotel. It may construct the image of Hotel and can assist in acquiring client satisfaction. In hotel industry, accidents and hurts can be happened out of the blue, because it is the portion of our life. It is good to outsource medical staff to guarantee clients wellness in any exigency. The ground behind outsourcing of medical service is that, if direction hire full clip services of a medical squad it will do more cost in footings of medical equipments and machineries. So a high degree medical service can be contracted from a medical service supplier company.
Leisure clip installations
Hotel direction can outsource the service of supplying a high-quality leisure clip installation, which can include the amusement proviso, athleticss and gym installations. When invitees have free clip they can pass their clip in playing games like Snooker, badminton, swimming, tennis and etc. an exercising hall and trainer can give mental relaxation by supplying clients fruitful suggestions and instructions to better their wellness and physical fittingness. Outsourcing this service can ensue in good impact of hotel and finally assist to acquire more concern.
The outsourcing of this service can better the quality of wash service which is presently provided in the Hotel. A hotel should hold a top category wash service to guarantee the clients satisfaction. It is one of the basic demands of clients, which should be handled decently.
Ad and selling
A 3rd party can cover the selling and publicities sing the Hotel really efficaciously, because selling and advertizement demands professional experts and new thoughts to pull the clients. If hotel direction employ selling forces, it will do more cost, and the needed degree of expertness can non be fulfilled due to limited resources of the Hotel in selling and publicities.
Language can be a barrier for clients every bit good as for directors of the Hotel. Most of the aliens can non understand the linguistic communication used at that place and may do communicating job. A good interlingual rendition service will decidedly increase the assurance degree of clients. Contracting this service is more appropriate than in house service.
Procuring the conveyance services or shuttle service of a 3rd party is indispensable for Sunny Hotel. Most of the invitees do non hold their personal vehicle when they travel to long distances. So proviso of shuttle service from airdrome to Hotel and wise versa, will all of a sudden go forth a great impact on invitees. Contract out of this service and holding a comfy and reliable service will hold a good alteration in the Hotel values.
Care of electrical, mechanical and other repairable material is an of import portion of any Hotel. Supplying non-stop warming in winter and chilling in summer is non possible without a dependable care service. It is good to hold a outsourced service for care of different contraptions and equipment used in the hotel to hold satisfied clients. For case if there is an electrical job occurred in the kitchen it consequences in perturbation in all other services. Therefore good maintained equipments are really of import to hold a great trade in other services.
Providing service should be provided in really nice manner in Hotels like Sunny Hotel. Supplying nutrient and comfy environment during events, seminars and parties can be outsourced to hold a professional quality catering service, which will decidedly take to pull more clients.
Centralized buying and buying efficiency
Centralized buying is where a individual buying section, normally located at the house ‘s corporate office, makes all the buying determinations, including order measure, monetary value policy, undertaking, dialogues and supplier choice and rating. ( wisner, sunburn, leong, 2009 )
[ Wisner, Tan, Leong, 2009, p62 ]
Centralized buying section is a good manner to consolidate whole buying of an organisation in a individual section. It has monolithic advantages over decentralised buying.
In centralised buying the large advantage is of economic systems of graduated table. Merchandises can be purchased in a majority measure, which leads to moo cost and physiques strong relationships with providers.
Centralized buying is a cost effectual buying technique, in which purchasers have power to dicker on the monetary value of the trade good they are buying. One of the benefits of centralised buying is, it helps to avoid the duplicate of attempts and procedures, which leads to cut down the cost of buying.
Due to specialisation of work, expertness and accomplishments of buying forces a good quality of merchandise and service can be procured on sensible monetary value. It reduces unwanted procedures involved in the buying and lower the transit cost. Another benefit of centralisation is co-ordination of activity, which consequences in addition of accomplishments of forces and a better provider relationship. Centralized buying section has capableness to understand difference in provider abilities, so they can concentrate on Standard providers. Centralized section of buying aids to increase the buying efficiency, because buying section sets certain criterions for purchase of goods and services and have professional forces for buying.
Centralized buying, hypertext transfer protocol: //dictionary.bnet.com/definition/centralized+purchasing.html, accessed on 7th of may
Service purchase by Purchasing Department
It is a benefit for an organisation to hold centralized purchase section for purchase of services. This is a good manner to beef up the buying through a amalgamate section.
Centralized buying section reduces the staff direction jobs and wastage of human resource. Purchase of services is different from goods due to its features, so centralised section for buying is a simple and more appropriate manner of buying services. The belongingss of services make its procurement spot hard from goods. Now a yearss most of the hotel direction are following the centralised buying techniques for services. The staff cost decidedly reduces because of combine of all buying at a individual platform. The addition in efficiency of services and flexibleness in services are besides advantages of buying section.
Buying section compares the services with other rivals and purchase best service harmonizing to the desires and demands of the section.
( hypertext transfer protocol: //www.wisegeek.com/what-is-services-procurement.htm )
Other ways to better buying Efficiency:
By following E- Procurement organisations can better buying efficiency. E- Procurement is the procedure of securing the services and goods by utilizing cyberspace and doing purchase utilizing on-line systems. It is used to link securing company and provider in an efficient manner. E- Procurement includes inquiry and replies, commands, pricing by directing electronic mail to many providers and acquiring sound offers from different providers.
It is an organized manner to pass on with the providers, which builds better relationship between securing organisation and provider. This system allows direction to analyse and put pricing and
makes certain that new monetary value offered is more sensible than old one. E procurance is a standardised manner of securing which is straightforward system to larn, so organisation do non hold to pass more monetary value on using a high skilled forces.
E procurance, hypertext transfer protocol: //www.epiqtech.com/e-procurement.htm, accessed on 08 may 2010
Better communications between buying section and other sections of an organisation can ensue in betterment of buying efficiency. In Sunny Hotel, this issue is raised after the centralised buying section. So a commission can be form which comprises of buying forces and section caputs to cover the deficiency in communicating during choice of provider and buying a service
When buying services, analysis of past public presentation of the provider should be kept in head which immediately increase the efficiency and cut down the cost of that service and eventually a good quality service can be provided. Feed back of clients is besides of import in buying of services.
Supplier choice standards for procurance of services
Current Supplier choice standards of Sunny Hotel is based on same technique which is followed for supplier choice of goods. So direction of the Hotel demand to see more things while choosing a provider. Which may ensue in holding better providers for services.
Fiscal ability and capableness
When choosing a provider for proviso of services, fiscal ability of that provider should be considered. The Sunny Hotel direction should take in to account the strength of provider, which means that ; fiscal resources, human resources, technological resources and grade of ability to get by with fluctuation in demand of services. Flexibility in services is frequently found so the provider should be able to cover with assortment and fluctuation in services.
This is a really of import step for choosing a provider, which is non followed in the Sunny Hotel so far. Dependability means proviso of service in due clip. So a service should be supplied when it is needed or at least when it is promised. If a promised service is non given at right clip it is worthless for clients. For case, if a shuttle service does non make in clip to airport, it will do an irreparable harm to the repute of the Hotel
A quality service is cardinal thing in Hotel like Sunny Hotel. A good quality service may promote clients to see once more. While choosing provider this factor should be a cardinal point.
Health, safety and environmental issues
In choosing supplier Health and safety issues are besides an of import thing. If a provider is non following the wellness and safety ordinances so this consequences in sudden accident and hygienic issues. In current epoch, environmental ordinances are necessary to follow, clients should cognize that how purely hotel direction is implementing the Torahs and regulations related to environment.
Theories of supply concatenation direction related to the Servicess
A committedness over an drawn-out clip to work together to the common benefit of both parties, sharing relevant information and the hazards and wagess of relationship. These relationships require a clear apprehension of outlooks, unfastened communicating and information exchange, common trust and a common way for the hereafter. Such arrangemenst are a collaborative concern activity that does non affect the formation of legal partnership.
Harmonizing to CIPS ( Chartered Institute of Purchasing and Supply ) , E-Procurement is utilizing the cyberspace to run transactional facets of requisitioning, empowering ordination, having and payment procedures for the needed services or merchandises. ( Lysons, 2006 )
Buying and supply concatenation direction 6th edi definition Pp.186-187
The CIPS statement indicates that, the local concern directors focus on E-Procurement which and they cover subsequent countries of buying procedure.
Requisition against agreed contract, Authorisation, Order, Receipt and Payment.