Case study: Atlantis, The Palm
In his key note speech, Bhanu Pratap Singh, director of procurement at Atlantis the Palm, outlined six steps he implemented to ensure maximum efficiency in procurement at the Palm Jumeirah hotel.
1. Vendor prequalification and registration
It is vital to identify right the partner and to do this, Atlantis’ parent company Kerzner has a dedicated website: www.kerznerprocurement.com
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2. Securing best offers and prices
Singh criticised the traditional process of seeking three quotes and choosing the lowest one. Instead, he said Atlantis looks to the supplier that can deliver the best value on the table. “How can you get the best product if you always select the lowest price?” he asked.
3. Safety and risk compliance
Atlantis, The Palm introduced a vendor on site audit. So far, it has visited 58 F&B suppliers. Of these 33% couldn't pass the threshold in the first audit. Instead of dropping these suppliers, Atlantis asked them to work with the hotel to meet the required stanbdards. The vast majority agreed and of the 58, only four vendors have been dropped.
4. Sustainable vendor relationship
This involves supplier performance reviews and setting up KPI scorecards. The hotel involved procurement, finance, receiving — internal stakeholders. Atlantis has met with 46 companies so far, and according to Singh, “not one has said this process of reviewing the partnership has not added value to them or us”.
5. Contracts lifestyle management
This involves contract drafting and online approval, managing sales, tracking contract utilisation and contract repository. The problem is that most discussions are verbal, said Singh, so you need to identify in black and white exactly what you want the supplier to perform upon.
6. Spend management
The last step is the classification of spend data and spend visibility to stakeholders. This involves the identification and tracking of new initiatives.
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