Hotel Supplies Procurement Management and Daily Usage Support

**III. Procurement and Supply Management of Materials and Supplies**

The procurement of hotel supplies is a crucial step in ensuring operational needs and controlling costs. Its procedures and methods are as follows:

(I) Formulate a procurement plan for materials and supplies

Hotel supplies procurement is divided into two types: pre-opening procurement and supplementary procurement during business operations. The methods for preparing procurement plans are not entirely the same.

1. Preparation of Procurement Plan for Opening Supplies. Most of the supplies and materials needed by the hotel and its departments are procured in one go before opening, based on the hotel's star rating and the required business volume for a certain period. All procurement costs at this stage are recorded as start-up expenses, and after opening, they are recorded as costs incurred using a decreasing start-up expense method (i.e., a portion is amortized annually). Therefore, the method for preparing the procurement plan is as follows: Based on departments, and according to the reception capacity and service items of guest rooms, restaurants, kitchens, recreation rooms, etc., determine the types, names, specifications, quantities, and estimated prices of the supplies and materials required. The quantities are divided into fixed-quota quantities and reserve quantities (generally determined based on 0.5 to 1 year's usage). Then, a categorized procurement plan table is prepared. See the table below for the format.

**Opening Items Procurement Plan**

Classification Department Compiler

| Item Name | Specifications | Purpose | Allocation Quota | Reserve Quantity | Procurement Item | Unit Price |

| | | | | | | |

2. Annual and Quarterly Supplies Procurement Plan. The annual and quarterly supplies procurement plan is a supplementary procurement plan for materials and supplies, prepared based on the initial setup and as business activities progress and supplies are gradually consumed. The types, names, and specifications of the planned items are the same as those for the initial setup. The quantity plan is divided into two parts: the annual planned consumption and the monthly/quarterly planned procurement quantity. The former is the planned controlled consumption quantity, while the latter is the planned procurement quantity prepared according to consumption quotas. See the table below for the plan format.

**Daily Necessities Replenishment Plan Procurement List**

Department Classification Table Compiler

| Item Name | Specifications | Unit Price | Use | Annual Consumption | Current Period Purchase Quantity | Estimated Amount |

| | | | | | | |

(II) Determining the Procurement Price of Materials and Supplies

Hotel supplies come in a wide variety of types and prices. Especially during pre-opening procurement, which involves large quantities, it's crucial to employ a multi-party pricing strategy, including open bidding and collective pricing. Adhering to the principle of comparing prices from at least three suppliers is essential to set reasonable prices and reduce procurement costs. The pricing method involves dividing supplies into different pricing periods. Before each batch of goods is procured, market conditions are assessed, and a price list is prepared. Then, the hotel's purchasing staff, finance manager, warehouse staff, and business manager jointly determine the purchase price or bidding price. Suppliers take turns negotiating prices with these individuals (the collective pricing team). Based on this, the procurement plan is submitted to the general manager for approval. A price list is then printed and distributed to the purchasing, warehouse, finance, and business managers for signature. This joint oversight of price implementation ensures control over the cost of supplies.

(III) Organize the procurement and purchase of materials and supplies according to plan.

Based on the established procurement plan and pricing, the procurement of opening supplies and materials is generally handled by a dedicated team organized by the hotel. This team signs procurement contracts with suppliers according to the planned quantities and prices, and purchases are made in bulk or in installments. Daily necessities are procured according to monthly or quarterly procurement plans and price standards, with procurement personnel organizing timely deliveries. Each procurement process must adhere to the principles of appropriate product types, high quality, reasonable prices, suitable quantities, and timely delivery. This ensures the needs of the hotel and its departments' business operations are met while maintaining strict adherence to regulations, integrity, and a commitment to not seeking personal gain.

**IV. Daily Use and Management of Supplies and Materials**

The daily use of hotel supplies and materials is a concrete manifestation of meeting guests' consumption needs and providing high-quality service. The management of these supplies and materials focuses on three key aspects:

(I) Standard equipment to ensure the hotel's reception service standards

After the hotel purchases various supplies and materials, they are used daily by all levels of departments and service projects. Therefore, all levels and departments of the hotel must ensure that all supplies and materials are adequately stocked according to the hotel's star rating and reception standards, and in accordance with the prescribed quotas. "Stocking according to the prescribed quotas" means that all items supplied to each department and service project must meet the quota requirements in terms of variety, specifications, quantity, and quality. Only in this way can the hotel's star rating and reception standards be maintained, ensuring the needs of guest services are met.

(ii) Supplement and update to ensure business needs and customer consumption demands are met.

Once the hotel's supplies are in place, disposable guest items must be replenished daily as guest services commence. Reusable guest items must be rigorously washed, wiped, and disinfected daily before reuse. Any items damaged, lost, broken, or reaching the prescribed obsolescence standard must also be replaced. Only by accurately, promptly, and according to standards replenishing and replacing items can the hotel and its departments' operational needs be guaranteed, ensuring guest satisfaction and high-quality service.

(III) Regularly collect statistics and assess the effectiveness of the use of materials and supplies.

In the daily use of hotel supplies, original records should be kept daily at the department and work team level, and the effectiveness of supplies usage at each level and department should be regularly assessed. Specifically, the cost and cost rate of food and beverages for each restaurant should be calculated daily and accumulated. Other supplies should be recorded daily, and the consumption of each department should be summarized. The consumption amount and expense rate of these items should be calculated monthly. This serves as the basis for controlling the hotel's and each department's costs and expenses, and provides decision-making reference for the hotel's general manager and other senior and middle-level managers regarding supplies management.