The Amora Hotel Jamieson needed a solution to efficiently manage procurement and reduce high operating costs, especially food costs that were running at 39-40%. The Purchase Plus platform was chosen as it addressed all their challenges. It helped significantly reduce food costs within 3-9 months, reduced deliveries by 72%, and reengineered menus removing 1000 product lines. This exceeded their expectations and allowed them to open an additional restaurant.
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5 Star Hotel Reduces Food Costs 15% with Procurement Software
1. the client
An award winning 5 star luxury hotel, Amora Hotel Jamieson is
known for its exceptional entertainment and conferencing facilities
in the heart of Sydney’s Central Business District with two restaurants,
two bars and functions rooms of various sizes for different needs.
the challenge
Given the size of its operation and the number of people involved
that make day to day spending decisions, the client needed a
solution to efficiently manage procurement workflow, supply chain
and cost control.
A solution was needed to curtail very high operating and food cost,
with the latter running at 39-40%. This was even made more critical
by the sudden exit of key staff – including the previous executive
chef and also the purchasing manager – which could have led to
additional risks and expenses.
Regardless of the increasing costs and diminished control, the hotel
did not have in place a budget for a project that could deal effectively
with the situation. Applying more staff was an expensive option that
would ensure availability of goods but did not necessarily guarantee
better results.
the solution
The Purchase Plus platform was chosen as it was able to address
all of the challenges outlined by the client. The deployment of this
easy-to-use software was quick and methodical due to effective
project management for both training and installation from the
Marketboomer team.
Covering workflow on all purchases, Purchase Plus’ procurement
tools and the centralised catalogue (Catalogue Connect) helped the
client to:
• significantly reduce food costs which met its core objective;
• reduce overall deliveries of goods to site; and
• mitigate risks through rationalisation of products, suppliers
and purchase orders.
Amora Hotel
Jamieson
Class
Sydney CBD 5 Star Hotel
No. of rooms
415 Rooms
Website
www.amorahotels.com
www.marketboomer.com
case study
Not only did Purchase Plus address all
of our challenges but it also delivered
immediate cost saving results that
exceeded our expectations. The
deployment was done very well, despite
major personnel changes within our
business. The exceptional outcome is
a tribute to Marketboomer’s project
management capabilities. What
impressed us most is markboomer’s
ability to help focus us on opportunities
that create new and unparalleled
experience for our clients.”
Mohammad Taheri, Executive Chef
Amora Hotel Jamieson
“
2. roi summary
ROI benefits were realised through:
• Real time visibility on market pricing and availability of goods to make
informed purchase decisions instantly;
• Supplier rationalisation as the system was able to report on vendor
performance and competitiveness to easily identify preferred suppliers. More
purchases against fewer suppliers, resulting in better deals;
• Easier menu reengineering and maximisation of product purchase power
with the ability to quickly and easily map out all goods, needed for all products,
offered in all outlets;
• Reduction of deliveries through order consolidation and visibility on
outstanding orders to reduce staffing costs for the loading dock and invoice
management; and
• Streamlined operations, purchase process and workflow to better control
purchases and ensure quality of procured goods.
Increased profitability and opportunity
Purchase Plus exceeded the client’s expectations, resulting in significant cost
savings immediately and on the ongoing basis. The massive cost savings achieved
has helped the client to fund an additional restaurant within the hotel which was
opened within 9 months of deployment of Purchase Plus.
15+85+C15%
15% Cost Reduction
of food costs (13% within
3 months, 15% within 9
Months)
72% reduction of
deliveries from 250/
week to 70/week
20 Menus
reengineered affectively
removing about 1000
product lines from
inventory
72+28+C72%
20
About Purchase Plus
Used extensively in the hospitality
market, Purchase Plus is a fully
functioned eProcurement platform
that provides a complete online
marketplace capability for businesses
and their suppliers. Business groups
may also create private marketplaces
to manage the Procurement and
spend of multiple businesses and
group suppliers in one place.
About Marketboomer
Marketboomer provides an online
procurement system and related
services for hotels and their preferred
suppliers to buy and sell in the most
effective way.
Marketboomer is backed by industry
experts and extensive experience in
many markets including Australia,
China, Thailand, Singapore, Malaysia,
Indonesia, New Zealand, Fiji, UK,
Ireland and UAE. Marketboomer’s
customer base includes some of
the largest global hotel groups and
suppliers.
Contact Details
Sales and Marketing Manager
1300 666 044
info@marketboomer.com
Copyright 2014 Marketboomer. All rights
reserved. Reproduction and/or distribution in
whole or in part in electronic, paper or other
forms without written permission is prohibited.
All information in this material was correct at
press time.
With Purchase Plus, we plan to further reduce our cost by 3-4% with in
the next three months and then maintain that level of performance into
the future.”
Mohammad Taheri, Executive Chef
Amora Hotel Jamieson
“
www.marketboomer.com