Mubashar Shahab, executive director and head of global procurement for FRHI Middle East, Africa & India explains how procurement is evolving into a win-win situation for buyers and suppliers
How long have you been in hotel purchasing?
I have been directly involved in global procurement for more than 10 years. I joined FRHI-owned company Avendra, the largest procurement company in the USA, before being asked to lead the FRHI global procurement division covering all FRHI brands worldwide. I was based at the Toronto corporate office but have recently moved to our Dubai regional office, maintaining the same position.
What products are you on the lookout for?
We are continually seeking more environment friendly options, new and innovative product lines and of course, more economical but quality product sourcing through reputable and reliable manufacturers.
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How is procurement evolving in the hotel industry?
The industry is shifting from traditional purchasing to more strategic procurement and better alignments with the supplier community by adopting more mutually beneficial partnerships. In this new strategic procurement environment, both parties view each other as equal partners, assisting each other with training, technical help, and developing a trusting environment and understanding the cost structure benefits on both sides for the long-term. The buying company involves the supplier early in the new product design cycle, allowing the supplier to bring their expertise to the process and gain better understanding of the manufacturing process. Simultaneous engineering is routine, and cost savings are generally shared for product variations or through process innovations.
What does a supplier have to do to impress you?
Suppliers must anticipate their partner’s needs and offer suitable solutions to meet their requirements. Often a supplier meets a buyer and they simply try to sell their product whereas, they should focus more on their buyer’s needs and offer solutions rather than using the traditional ‘sell’ approach. It’s about how their product fits in the buyer’s requirement and what can be done to make that fit perfect. The best suppliers are those who find a win-win solution. It’s definitely not easy, particularly in the current competitive and deflationary trading climate, where we all face the daily challenge of cost reductions or hedging against potential cost increases.
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