With the emergence of hotel procurement as a front-of-house function, it is important for procurement managers to be good negotiators to be successful.
Mubashar Shahab, executive director & head of global procurement, FRHI Hotels and Resorts defined what it takes to be a successful negotiator at the Hotelier Middle East Procurement Summit, which took place on November 3, at the Grosvenor House Dubai.
“The region has its own set of challenges versus the rest of the world. Suppliers always return with a reduced price. You need to check if price is the only criteria you look at (when you procure)," he said.
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That means contract negotiations are extremely important. “Both parties need to come to an understanding to address the requirements. The outcome of the negotiation has to be beneficial to both parties. One also needs to be open to a compromise, negotiations are not always about getting things done your way."
Shahab continued: “But you cannot achieve fruitful negotiations without defining a well-defined strategy, and for that you need have simple processes in place. The key to a successful negotiation is to spend enough time in preparation, understanding the needs of the hotel. It’s also important to understand your supplier channels. There are time you are up against a monopolistic system, you have to learn to work with it.”
Negotiations can be unpleasant at times, but that should not hamper purchasing managers from closing the deal, according to Shahab. “You have to be very careful while negotiating a deal, beware of how you word it, communicate it and to whom it goes out to. However, it’s crucial to get face time between the two parties, human contact goes a long way.
”To negotiate is an art - that involves human sentiments such as warmth, understanding between the two parties, trust and the ability to reach a mutual understanding.”
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