The Power of Purchase panel discussion highlighted the importance of vendor relationship for a successful purchase manager and how it helps them mutually benefit in a highly competitive industry By Saloni Bhatia
The 13th Power of Purchase panel discussion of Hospitality Purchasing Manager’s Forum (HPMF) at FHW Goa 2016, brought together vendors and purchase managers under one roof. The panel included Satchitanand Shinde, purchase manager, The Kenilworth Beach Resort & Spa, Goa; Pradeep Faldessai, purchase manager, Novotel Goa; Ramesh Iyer, assistant vice president – material management, Deltin Group, Goa; Swinky Kumari, purchase and sales manager, Acacia, Palmyra Resorts; Mohan Deshpande, chairman and founder, HPMF; Sunil Warkhandkar, materials manager, Cidade de Goa and Suba Iyer, purchase manager, Whispering Palms Resort, representing the purchase managers. The vendors included Samir Essani, proprietor, Samir Hotel Supplies; Yogendra Sadani, proprietor, Sonam Industries and Abdul Karim, national sales manager, Ghodawat Foods, Sanjay Ghodawat Group. The panel was moderated by Shiv Menon, former regional materials manager, The Taj Hotels, Karnataka and mentor, HPMF.
In a rapidly changing industry where new products quickly replace the old ones, purchase managers have to make tough decisions within a restricted budget. That is where the vendors bring in the knowledge of their product and build on a strong relationship with purchase managers. Commenting on the relationship, Deshpande opined, “As more number of suppliers enter the market, we need to be more careful with our purchase decisions. We need to support them and vice-versa in order to grow together.”
Warkhandkar added, “Vendors are our customers and this relationship should be a truly transparent and professional relationship where both the sides have to be understood. Vendors are our saviours who come to the rescue at a very short notice and that is only possible over a good relationship.” Ramesh Iyer agreed to the dependency in the relationship where often the vendors provide the materials over a simple call. He stated, “A vendor-buyer relationship needs to be good in order to get the results on time. The e-buying trend might have surfaced, but at the end of the day one would only call the vendor who serves the best quality at the best price.”
Kumari stressed on the point that the manager should make the users understand the quality of the product is as per the standard of the hotel. She mentioned, “Our customers demand a certain standard of quality and we as managers need to maintain it, keeping the hotel budgets in mind. We are not at liberty to change our vendors too often.” Faldessai added to the point, “One cannot put excuses with the customer if they demand. Therefore it is best to deal with vendor and have products ready in stock.” Shinde remarked, “As a manager, the requirement of the hotel needs to be met at priority and the prices shall be negotiated later. This creates a flow of trust among the people involved.” Adding to this point Suba Iyer stated, “It is best to get the best quality product within a desired price but that possibility is less. Therefore a manager needs to hunt for the product that best suits their hotel.”
Good quality at best price
Vendors also face challenges to convince the purchase managers to shift to their product. It is only possible when they explain the true quality of their product and the various benefits related to it. Adding a vendor’s perspective to the discussion, Karim mentioned, “It is comfort and trust that will lead to a healthy relationship. While vendors need to be aware about the market, a purchase manager should give them the opportunity to bring forward their product. They can also help us to improve the quality of our product through a feedback or demand customised products needed by the customer.”
Essani stated, “If you make a product needed by the vendor, it should be of premium quality and the best price to compete in the market. That is how one can make to the list as the most preferred vendor.” One of the major setbacks for the vendors is the payments by hotels. Sadani stated, “Often a good quality product is priced higher and purchase managers need to be aware about the reasons. If the vendor shows trust and delivers the product, purchase managers should release the payments on time to retain a healthy relationship.”
Reflecting on the relationship Menon added, “A purchase manager is the voice of the vendor and would aid them at all times. But to enhance the power as a purchaser, vendors should provide accurate information so they can convince the user to buy the product within the given budget. It becomes important for the vendor to be honest and ethical in order to build on a long term relationship.”