
Common Procurement Challenges in Hospitality Procurement
At first glance, hospitality procurement seems straightforward—source products, select suppliers, and receive deliveries. But in a global market, the reality is far more complex. Managing logistics across multiple regions, dealing with supply chain disruptions, fluctuating currencies, and cultural differences can create significant challenges.
For many hospitality organisations, embracing digital procurement through the right Procure-to-Pay (P2P) solution unlocks significant operational and financial advantages. Research from Aberdeen reveals the transformative power of digital procurement:
- Requisition-to-order costs plummet by 50%
- Cycle times accelerate from 9.6 to 3.4 days
- Spend under management (SUM)jumps 35%
- Maverick spending drops by 41%
These aren't just numbers—they're the difference between leading and following in today's competitive landscape. With modern procurement technology like FutureLog’s P2P solutions, hospitality businesses can gain greater visibility, streamline processes, and enhance supplier collaboration. In this article, we explore the challenges of global procurement and the strategies to create a more efficient, cost-effective purchasing ecosystem.
Top Hospitality Procurement Challenges - and How to Overcome Them
1. The Supplier Reliability Puzzle
When suppliers falter, your operation stumbles. Late deliveries and subpar products aren't just inconveniences, they're threats to your brand promise. The solution lies in sophisticated supplier management:
Transform your approach by vetting suppliers like investors evaluate stocks: assess financial stability, track record, and reliability metrics. Deploy procurement systems that monitor performance in real-time, and maintain a diverse supplier portfolio that ensures resilience without sacrificing efficiency.
- Strategic Edge: Cultivate VIP relationships with key suppliers. When peak season hits, you'll have priority access when it matters most.
2. The Visibility Crisis
You can't optimise what you can't see. In today's data-driven world, fragmented spending information isn't just inefficient, it's a competitive disadvantage.
The answer? Centralise your procurement management. Modern systems provide a command centre for all spending activities, turning data into insights and insights into action. Combine this with robust analytics and clear policies, and you'll transform chaos into clarity.
3. Process Efficiency: The Hidden Multiplier
Manual processes aren't just slow - they're silent profit killers. Each manual step in your procurement process is an opportunity for error and delay.
- It is best to embrace automation strategically. Start with approval processes, purchase order generation, and invoice matching. Integrate your procurement tools with existing systems to create a seamless flow of information and decisions.
4. Cost Control: Beyond Simple Savings
Unmanaged spending isn't just expensive - it's a symptom of strategic drift. Smart organisations are leveraging spend data to negotiate better terms, consolidating suppliers for economies of scale, and adjusting procurement strategies in real-time.
- Pro Insight: Regular benchmarking against industry standards isn't just good practice—it's your secret weapon in supplier negotiations.
5. The Compliance Imperative
In today's regulatory environment, compliance isn't optional, it's essential for survival. Leading organisations are turning this challenge into an advantage through:
- Standardised contracts with built-in compliance safeguards
- Automated compliance tracking
- Continuous team training on evolving standards
6. The Technology Tipping Point
Technology isn't just changing procurement, it's redefining what's possible. The key is the implementation of a modern P2P solution that enhances rather than disrupts:
- Phase in new tools strategically
- Invest in your team's capabilities
- Choose solutions that grow with your organisation
7. Supply Chain Resilience
In a world where disruption is the new normal, resilience isn't a luxury - it's a necessity. Build it through:
- Strategic contingency planning
- Geographic supplier diversification
- Real-time monitoring and early warning systems

The path to procurement excellence is clear:
Embrace digital transformation, prioritise visibility, and build resilient processes. The question isn't whether to modernise your procurement, it's how quickly you can make it happen.
Remember: While technology transforms procurement, people drive success. Foster collaboration, invest in training, and build a data-driven culture that empowers smart decisions.
OUR APP: Procure-to-pay while on the go!
From placing orders and managing recipes to approving invoices and viewing reports, with FutureLog’s native mobile app you’ll have all the power and automation of our P2P web solutions conveniently at your fingertips. Whether you’re online or offline, you can stay in control.