Delegates enjoyed a day of panel discussions led by leading procurement managers from UAE hotels, as well as two workshops run by industry experts.
“Instead of simply focusing on cost only, cost value should be the primary concern of the hotel,” said Nair.
Wissam El Cheikh Hassan, managing partner of Al Dar Sweets and GM of Dar Al Zakhrafa Décor — previously purchasing manager at Procter & Gamble in Dubai — responded that if the procurement manager is doing their job properly, they should be able to lower cost without impacting quality.
“The reason you are hired is to buy, and by doing your job properly, observing the market, you will lower the price, without necessarily lowering the quality. As this is a fundamental part of the role, that is why cost savings should be a targeted part of the role,” said Hassan.
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“Changing approach or attitudes towards buying comes under strategy; get better prices not by negotiating but by sourcing. How fast are you changing, how often are you changing and why are you changing,” added Hassan.
He recommended centralised purchasing among hotel chains in the UAE as one solution, highlighting the umbrella approach of Starwood Hotels and Resorts as an example of best practice.
Hassan also suggested that efficiency could be enhanced with the use of specialists and category management, for example, different people to source F&B products, FF&E etc.
Evolving roles
On the subject of where the Middle East hotel procurement business stands in comparison to other regions, the panellists said it was time for procurement managers to be more strategic, ideally evolving their roles into business development.
“What is the target of your organisation and how does it feed into the procurement department? There is a gap. That gap is strategy,” said Hassan.
“If you look at international best practices, one thing [we are] missing is strategic orientation — meaning what we want out of every deal, not only based on financial parameter,” agreed Singh.
“We need to step out from procurement into business development,” he asserted.
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