Still recovering from pandemic-related revenue losses, rising costs, and supply chain challenges, the Hospitality and Leisure (H&L) Industry is facing an uphill climb. While there is no short path to recovery, from our position as strategic cost consultants, we see many industry leaders focused on “controlling the controllable” to get by. This approach is no surprise because, during an inflationary market, many areas outside your sphere of influence impact your spending.
If you’re searching for opportunities to maximize your savings during challenging times, our consultants have identified four spending areas within the H&L sector worth reviewing right now.
Spend Area 1: Information Technology
Is your upcoming hardware refresh compatible with your existing point-of-sale software? Are you introducing a new ERP system; if so, have you confirmed your requirement to ensure you have the right balance of capability v cost? For e-commerce activity, do you have a cyber solution that is fit for purpose? Have you negotiated software pricing with your reseller?
If you answered no to the above questions, now is the time to look at your contracts and suppliers. Consider renegotiating better terms or sourcing other providers/solutions that are a closer fit to your company’s unique needs.
Spend Area 2: Waste
Do you know the weight of your waste? How often is it collected? Do your staff segregate recycling waste to make it easier for companies to collect? Are you receiving any income for items of value v tossing them out? Do you reduce waste at each opportunity, or is your focus purely on disposal?
Knowing the answer to these questions will help you determine whether your waste solution is optimal and if there is room to negotiate better rates. Furthermore, you will be able to identify where different operational practices could improve your bottom line.
Spend Area 3: Cleaning
If an external company provides your cleaning services, meet with them to review your needs and areas where spending could be reduced. Could the cleaning be done on fewer days each week? Can alternative cleaning supplies be purchased at a lower cost without compromising quality?
If cleaning is delivered in-house, consider using alternate products after trialing them to ensure they are the most cost-effective without sacrificing quality. Keep stocks of supplies central to ensure you have a manageable inventory and aren’t ordering unnecessary items. Lastly, review your ordering process and the number of suppliers for these items. Could you save money by consolidating suppliers? Or would diversifying your supplier base drive down these costs?
Spend Area 4: Managed Print
When looking at your in-house printing services, is your copier pricing manageable, but servicing is a nightmare? Do contracts roll over because they fall into the ‘difficult’ pile? Every supplier will tell you they’re doing an excellent job at market-leading rates, but have you ever benchmarked alternatives? Do your employees engage in excessive printing, resulting in unnecessary spending on supplies and maintenance?
Looking at other suppliers in this cost category could save your company hundreds of thousands of dollars. Additionally, examine employee practices and see where savings could be found via providing printing best practice guidance to employees.
Maximize Your Savings Potential
In addition to what you might uncover in specific cost areas, look cross-departmentally at your processes. Is your system helping or hindering? Do you have the resources to examine all of these areas individually, or would you benefit from outside help?
Our consultants have helped clients in the H&L industry maximize savings and improve operational efficiencies for the past 30 years. If you’re looking for a boost to your bottom line, contact us today.