Quick Chat: Vinith Kumar, Assistant Manager Purchase, Renaissance Bengaluru Race Course Hotel
Kumar gets candid about striking the right purchase deal
What is the most crucial part of purchasing in today's dynamic market scenario?
Purchase and supply chain are the two most crucial areas that needs more focus from the management. In order to maximize profitability and reduce costs at the hotel, the Purchase department has to involve themselves in the decision-making process and come up with solutions that are best suited for the organization.
What vendor compliance systems did you initiate for cost savings?
An effective vendor compliance system to avoid any issues and reduce the time spent on vendor chargebacks and disputes which leads to better-managed vendor relationships. Like every other purchase department, we also have a well-planned vendor compliance plan for cost control and efficiency in the department.
How do you identify high risk vendors? What are the various measure and procedures introduced to deal with this?
A: We undertake extensive research of all our vendors before we approach them to ensure that we understand what their process is, what kinds of profit margins they expect, the quality of the product, volume of business if they would-be able to handle large scale requirements, the quality of the product as well as support us in credits, are some of the major criteria that we follow. The more information you have, the more confident you’ll appear in negotiations, which will help you crack a better deal.
How has the domain of purchase changed over the years? Do the purchase managers have to develop certain skills today?
With the onset of the digital age, all purchase related processes are now automated making the entire work flow smooth and uncomplicated. Earlier, we used to handle things manually; when I started working, there was no ERP, now the ERP system has made our task much easier. We don't need to place any manual orders, everything is maintained online. Now the vendors are proactive, they know the seriousness of the supply chain department. We place orders by emails. In the current market scenario, with a centralized purchase system in place, garnering rate advantage from our vendors in all channels and stream is a more feasible than performing as an individual property. We have to be proactive and know the product well, nowadays, the quality of the product is not so great, we must have knowledge about each and every product available in the market, we have to know our guest preference.
How do you train your team to follow procedures for smooth coordination in Supply chain management?
A: At Renaissance Bengaluru Race Coure Hotel, we use hotel LOSP (local standard operating procedures) and over a period of time, we have gained some knowledge, which we share with our team that helps them in the smooth functioning of the department.