Hyatt Motels Company, a worldwide chief in hospitality since 1957, managing over 850 properties worldwide, sought to replace its procurement operate. With a income of greater than $4.4 billion, Hyatt aimed to boost operational effectivity, obtain higher management over expenditures, and, in fact, ship world-class hospitality companies.
The Problem
Hyatt set key goals:
- Transition to a cloud-based procurement platform.
- Implement a paperless Buy Order (PO) system.
- Centralize buying and accounting processes.
- Enhance spend visibility, management, and compliance.
- Allow detailed reporting and product forecasting.
The Answer: BirchStreet Programs
Hyatt selected BirchStreet Programs for its intensive data of the hospitality trade and all-encompassing options. Acknowledging the pivotal position of procurement because the heartbeat of inns, BirchStreet affords a complete system particularly crafted to streamline and improve day by day operations, as highlighted by Paul St. John, Vice President of the Gross sales Division at BirchStreet Programs. Key options embody:
- Automated Procurement Workflow: This method follows the day by day workflow of resort procurement groups by means of modular automation, guaranteeing effectivity and accuracy.
- Provider Interplay: The platform facilitates seamless interplay between inns and numerous suppliers. For instance, for adopted suppliers, BirchStreet develops a portal tailor-made to their particular wants, fostering a well-functioning ecosystem.
- Knowledge Safety and Privateness: It’s essential to prioritize the safety of knowledge and privateness. Paramount to their method is a dedication to sustaining the confidentiality and integrity of the data processed by means of their platform.
- Reporting and Automated Dashboard: The system consists of strong reporting capabilities, complemented by an automatic dashboard. This empowers inns with the instruments to research and visualize knowledge, aiding in decision-making and strategic planning.
- Stock Administration: Significantly essential for large-scale purchasers like Hyatt, BirchStreet helps organizations handle their stock successfully, maximizing on-hand counts and guaranteeing environment friendly inventory management.
- International Attain: With options like AP-3 Method Auto Match designed for world organizations, it caters to the wants of companies working internationally. This aligns with the various portfolio and world presence of purchasers like Hyatt
The Outcomes
The implementation at Hyatt yielded important outcomes:
- 40% Financial savings in Bill Processing Labor Prices: Hyatt achieved a considerable discount within the labor prices related to bill processing by using shared companies within the Accounts Payable (AP) division.
- 2-5% Financial savings as a Share of Whole Spend: By means of optimized procurement processes, Hyatt realized a big discount in its spending, contributing to value financial savings.
- 20% General Buying Spend Discount: Centralized and managed procurement processes led to a notable discount in total buying spend, boosting the group’s cost-efficiency.
- 70% Quicker Bill Processing Time: The adoption of BirchStreet’s options enabled the Accounts Payable division to course of invoices considerably quicker, leading to improved monetary operations.
- 80% Buying Compliance: The automated and centralized procurement system facilitated a outstanding enhance in buying compliance, guaranteeing that finances allocations and procurement tips have been persistently adhered to.
“With BirchStreet, we’re in a position to see efficiencies in buying. Now we have the power to manage budgets from month to month and see actual invoices match as much as the PO. The AP 3-Method Auto-Match module is an exceptional device.”
Anne Hanch – SVP, International Procurement at Hyatt Motels
