When independent hotel management company, Then Hospitality, was on the lookout for a purchasing partner to reduce costs and save time within the business, Beacon, which helps businesses in the hospitality sector to grow their profitability, was the obvious choice.
Then Hospitality provides integrated solutions for both major hotel brands and privately owned properties. Having joined forces with Beacon in 2010, when the company managed only one hotel, it has now expanded its portfolio to 12 hotels across the UK. Beacon now manages Then Hospitality’s annual procurement budget of £3 million.
Stuart Broster, Managing Director of Then Hospitality, discovered that by taking advantage of Beacon’s years of procurement experience in the hospitality sector, the company could more effectively manage the scale of different projects. Having worked with the company for more than four years, Beacon’s remit covers the purchasing strategy for the group, and sourcing of a wide range of items across all category areas, from food and drink to furniture, fixtures and fittings.
Each month, Beacon is set a brief by the Then Hospitality team to explore a new area of procurement. For example, in April this year, Beacon sourced new suppliers and reduced prices for laundry, biscuits and coffee. One of Then Hospitality’s key areas to drive cost saving in the first six months of 2014 was from complementary items, such as biscuits in rooms – across 12 hotels, which can add up to more than 600 good quality biscuits being provided to guests every day.
By negotiating the pricing of these complementary biscuits through their supply base, Beacon reduced the individual cost per biscuit by 25%, which will save each site more than £2,000 per year.
“It has been fantastic working with Beacon as our purchasing partner,” commented Stuart. “As a true partner, the team really understands our aims as a business in terms of reducing costs across our portfolio and saving time internally. Beacon has a wealth of experience in our industry and is able to effectively manage our procurement processes, across all 12 hotels. Furthermore, we know that when new hotels are added to our estate, the addition of these properties to the purchasing plan will be quick and simple.”
Jason Thompson, Key Client Director at Beacon, commented:
“The team couldn’t be happier with the results we have achieved for Then Hospitality. Through regular category reviews and a clear purchasing plan, we have been able to make a real difference to the group’s bottom line. Since January, we have reduced the organisation’s food and drink spend by approximately 12% and we will continue to look for ways to improve Then Hospitality’s profitability, whilst still providing high quality products and services.