Rachel Dobson, managing director of Lynx Purchasing, explains how the specialist’s new insight guide urges operators to always review renewals.
As the peak buying season approaches, hospitality businesses have to reckon with a wide range of prices, offers and deals from suppliers, across the whole spectrum of products and services they need to buy.
A busy, time-pressed operator could be forgiven for sticking with what they know, in terms of both the supplier and the price. However, calling for competitive quotes keeps suppliers on their toes – and the business on top of its game.
Lynx Purchasing’s new insight guide, The Seven Habits of Highly Effective Purchasing Teams, details seven proven ways that businesses can make simple improvements to their buying, and the seventh habit advises us all to “Always Review Renewals”.
In a challenging market, businesses can be forgiven for putting the focus on customers if they feel that the supply side of the operation seems to be ticking over nicely. With dozens of annual contracts across the business in every department, it’s easy to let them roll-over or be automatically renewed, especially if you and your managers are happy with the service.
Our advice to stop this practice, and instead automatically call for competitive quotes on everything from utilities to insurance, waste management and all service contracts.
Doing this will achieve two things – the business will get the best value contract, and it will ensure better service either from the current supplier who has to remain keen and competitive, or from a new supplier who knows that the business carries out annual reviews.
Create a comprehensive annual contracts list, and contracts diary, with scheduled review dates and processes to follow.
A free copy of the Seven Habits of Highly Effective Purchasing Teams can be downloaded here.