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Sunny Hotel

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Submitted By jdaniely
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Service Purchasing at the Sunny Hotel
Jen Daniely
MGT608

Summary

A well known Hotel and Spa Resort in Turkey started off as a family owned business and has expanded 200% during a six year period. Previously the purchasing department only handled the purchasing of the supply of goods. The responsibilities of purchasing services were handled by the related department directly receiving the services. The owners decided to bring in a Purchasing Manager, Murat Var, to take over all the purchasing of services for the entire Hotel therefore centralizing responsibilities and building strong customer-supplier relations and improved levels of customer service. The department managers believe this new consolidated purchasing organization is logical and advantageous, however they do have a few complaints which include purchasing personnel not engaging department heads in the source selection process which has sometimes lead to wrong or bad selections.

Discussion Questions

1. What makes the procurement of services different from that of the purchase of goods and materials?

In the case of the Sunny Hotel/Spa & Wellness Resort, strategic procurement of services is crucial for the company’s success. The services flow is treated as a focal point that should be properly managed by outsourcing to service companies, whereas the flow of goods and materials supports service management. Therefore the procurement team for services at the Sunny Hotel are focused on securing service contracts from different companies, negotiating the best prices and cost minimizing, building supplier and customer relations that are mutually beneficial. Also occasionally re-evaluating the performance of the service provider to see if anything needs to be updated or changed. These things can take a lot of time and attention to really nail down a solid system. Procurement of services also

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