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How Hospitality Technology Has Changed Procurement in 2021

David Whyte

Hospitality software consultant

Purchase to pay technology has seen a huge growth in the last twelve months. We look at what is driving that growth and how procurement technology is transforming back of house operations post-pandemic. 

 

The pandemic has accelerated the adoption of digital technology in hospitality businesses over the last twelve months as operators look for more efficient, cost-saving solutions to support their businesses. And while many conversations centre around the adaptation of venues to adopt tech to help customer interactions on-site, such as contactless order and pay solutions, digital booking systems and implementing a delivery service – what about your back of house?

Streamlining back of house operations should be a key focus for all operators looking to control costs and protect revenue streams as we all navigate this period of sector recovery. In this article, we look at some of the challenges facing back of house operations and how technology can optimise your processes and support staff functions.

Managing Talent Loss 

Many businesses have been affected by the departure of talented employees as a direct result of the pandemic. And a key question all operators need to ask themselves now is what does our staff skillset look like post-pandemic?

The departure of an experienced procurement manager can have a profound effect on a business’s operations resulting in a disrupted supply chain and lack of skills to resolve the associated issues, source new suppliers and manage ongoing supplier relationships.

An overreliance on personal relationships and connections can lead to massive issues for a business when talented staff leave. Procurement is a crucial area for any business in managing cost efficiency and with many suppliers affected themselves by the pandemic, resulting in either loss of suppliers completely or ongoing relationships with suppliers affected by more staff loss on their end, it is now critical to evaluate current procurement management and look to adopt new strategies.

Brexit Impact

Further contributing to both labour shortages and supply chain issues is the impact of Brexit on the sector. Supply shortages have already hit the news in recent weeks, and this looks to be an ongoing challenge for hospitality operators. Many businesses will already be tackling procurement issues, whether through reducing the number of suppliers or looking to outsource procurement due to the lack of skills to resolve the associated issues within the business.

While supply chain issues will certainly remain an ongoing challenge for a while, getting ahead of issues can help reduce the impact on your business operations. The ability to gain full transparency over the process in your business through data will give you the advantage of pinpointing issues quickly by identifying cost trends, supplier changes and other data trends across multiple sites supporting efficiency, accessibility and sustainability of purchasing decisions.

Staff Support 

It’s important to acknowledge the impact of all these ongoing challenges on your team. The additional pressure placed on frontline teams will also impact your ability to retain talent and therefore anything that can support their day-to-day functions is going to help make for a happier and healthier team.

The adoption of automated procurement technology and a full kitchen management system can help reduce average labour time by 95% as well as increase accuracy of orders, improve stock control and reduce time spent on manual admin tasks. The same technology also empowers your back of house teams with full visibility over menus, waste management, allergens and nutrition, streamlining many previously time-consuming kitchen tasks.  

The Rise of Tech

As operators have searched for ways to be more cost-efficient during the pandemic there has been a rise in demand for effective purchase to pay solutions to optimise back of house operations. And as well as the benefits in cost control and staff support, you can guarantee business continuity – ensuring your guest’s experience is the best it can possibly be.

Purchase to pay technology is likely to be your biggest piece of software and with good reason! This tech automates all ordering, invoicing and POs all in one place, saving countless man-hours and driving back of house optimisation.

With the current challenges facing the sector, there has never been a more pertinent time to look to reduce the workload of your teams, streamline processes and protect your supply chain. Procurement technology can be integrated into your operation without the need to hire and train new staff and your business can start securing the cost savings immediately.