Hyatt Accommodations Company, a world 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 reinforce operational effectivity, obtain higher management over expenditures, and, after all, 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 in depth data of the hospitality business and all-encompassing options. Acknowledging the pivotal position of procurement because the heartbeat of inns, BirchStreet presents a complete system particularly crafted to streamline and improve every 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 every day workflow of lodge procurement groups by modular automation, making certain 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.
- Information Safety and Privateness: It’s important to prioritize the safety of knowledge and privateness. Paramount to their strategy is a dedication to sustaining the confidentiality and integrity of the knowledge processed by their platform.
- Reporting and Automated Dashboard: The system consists of sturdy reporting capabilities, complemented by an automatic dashboard. This empowers inns with the instruments to investigate 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 making certain environment friendly inventory management.
- International Attain: With options like AP-3 Method Auto Match designed for international organizations, it caters to the wants of companies working internationally. This aligns with the varied portfolio and international presence of purchasers like Hyatt
The Outcomes
The implementation at Hyatt yielded vital 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: Via optimized procurement processes, Hyatt realized a major 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% Sooner Bill Processing Time: The adoption of BirchStreet’s options enabled the Accounts Payable division to course of invoices considerably sooner, leading to improved monetary operations.
- 80% Buying Compliance: The automated and centralized procurement system facilitated a exceptional improve in buying compliance, making certain that funds allocations and procurement tips had been constantly adhered to.
“With BirchStreet, we’re capable of see efficiencies in buying. Now we have the flexibility to manage budgets from month to month and see precise invoices match as much as the PO. The AP 3-Method Auto-Match module is an exceptional software.”
Anne Hanch – SVP, International Procurement at Hyatt Accommodations
