As a food and beverage purchasing program, Best Western MarketPlace contracts with food and beverage suppliers to help Best Western hotels gain access to the right products for the best prices. With the Best Western International standards in mind, hotels can access a Product Guide based on their unique operation. Full service? Or are you a limited service hotel. Are you a standard Best Western? Or do you need easy access to the requirement for Plus and Premier hotel?
Best Western MarketPlace establishes long-term relationship with each hotel that participates in the program, regularly providing updates. The MarketPlace believes it is important for hoteliers to have a good understanding of what determines the best purchasing practices.
What is a GPO?
When considering an improvement to your purchasing strategy, the term “GPO” may come up; but what exactly does it mean? GPO is a Group Purchasing Organization that reduces operating costs through strategic procurement. The GPO’s functions include:
- Consolidating purchasing power
- Aggregating the demand for supplies and services on behalf of their clients
- Reducing staffing overhead costs
- Establishing contracts to achieve preferred pricing, terms and service standards.
The methodology to a GPO begins by analyzing the needs of the client. What types of products do they require? For a hospitality group, this may include linens, breakfast items, or toiletries. A restaurant, on the other hand, requires menu items, staff uniforms, or utensils. Then, the GPO negotiates contracts with various vendors – not only will this help you reduce spending, but may also qualify you for rebates. Once the contracts have been negotiated, the GPO will customize a procurement plan specifically for you based on your needs, which will then be implemented and tracked to determine the effectiveness of the plan.
As a result of combined buying power, small and mid-sized organizations are given the opportunity to save money in every facet of their business.
The Upside of Standards and Order Guides
GPOs have set high standards in order to provide you with the most effective purchasing program available. GPOs establish brand guidelines that are defined across all aspects of an operation, which are then diligently enforced to ensure a consistent guest experience. By implementing these standards, GPOs are able to build brand loyalty and keep guests returning.
Order guides provided by your GPO include a detailed online resource built in support of your operation and guests. This resource should list all of the items your daily operations require, giving you the opportunity to assess your options, such as finding an item of great quality at a reduced price.
Savings and Rebates
You don’t have to settle when planning your procurement program – aspire to obtain high-quality products and services for your business at a reduced cost. Without the aid of a GPO, small and midsized operations are only able to access street contracts with distributors, leaving them with limited discounts and no rebates. GPOs, on the other hand, have access to national contracts. For you, this means opening the door to pre-negotiated contracts and rebates, assisting in your goal to reduce spending without compromising quality.
Expertise in Commodities and Trends
No matter what type of business you own, all operations are greatly impacted by commodity market changes that result in inflation and trends that are driven by guest preferences and innovation. In order for your business to thrive, you’ll require a resource that is:
- Current with the latest industry news and trends
- Engaged in every aspect of the operation
- Able to evaluate options
- Able to recommend viable solutions in support of brand standards
In today’s fast-paced society, it is essential to stay current to avoid allowing your business to fall behind. Best Western MarketPlace possesses the necessary qualities and standards necessary to ensure you remain informed in all aspects of your industry and to keep your operations running smoothly.