“Data is the new oil.” Coined by data science entrepreneur Clive Humby in 2006, this simple statement continues to resonate.

Entegra has recently rolled out a newly rebuilt client platform, Entegra PurchasingIQ, which provides lodging operators with full visibility into procurement and instant drill-down into purchasing data to make data-driven, strategic decisions.

The power of data fueled the conversation at a recent Lodging Magazine roundtable where three lodging experts—including Entegra’s own VP of Data Management and Digital Solutions, Adrian Cox—gathered to discuss the critical role of data in the procurement process and a host of other lodging-related trends.

We’ve recapped the key highlights from each participant below. Watch the full roundtable here.

Adrian Cox, VP Data Management & Digital Solutions, Entegra:

• Technology evolution: There has been a significant increase in technology providers and the breadth of services in procurement over recent years, with a focus on dashboards, AI-assisted tools (the Entegra Shopping Assistant is a great example), and more user-friendly interfaces.
• End-to-end solutions: With the pandemic, there was more and more focus on time and savings applications. There are a lot more open APIs and different tools that help you connect your systems for seamless end-to-end business processes.
• Data quality: Starting with clean, well-organized data is key in order to leverage procurement decisions. Quick, directional KPIs are often more valuable than perfect accuracy, e.g., a pricing trend that is 75% accurate and can enable a quick decision is more valuable than a 100% accurate KPI that may take too much time to yield and be too complex to quickly act upon.
• Inflation and market volatility: While overall inflation has decreased, it remains "sticky," with spikes in specific commodities requiring quick reactions. He cited increases in pork a few months ago that have now subsided, but nods to current issues with dairy and cheeses. Technology must help track supply chain trends so you can swap out menu items faster.
• Future trends: Predicted stronger adoption of e-procurement, digital commerce, cloud computing, and AI, making these technologies essential considerations when selecting procurement partners.

Chequetta Dessources, VP of Procurement, IHG Hotels & Resorts Americas:

• Technological impact: Noted that tools like Open AI and Juno have simplified business processes at IHG, enabling quicker responses to market demands and creating a need for speed among owners, hotels, and suppliers.
• Market conditions: Discussed ongoing market volatility, particularly in freight and construction costs, and how IHG works with suppliers to mitigate these challenges, including offering financing solutions for hotel owners.
• Data collaboration: Emphasized a collaborative approach with hotel owners and suppliers to assess market needs and focus on relevant data and paying attention to the "noise" in the marketplace to guide procurement decisions.
• Sustainability and innovation: Sees technology and data access driving innovation in sustainability efforts. Highlighted the increasing focus on sustainability through initiatives like IHG’s Journey to Tomorrow, which includes projects on energy, electric vehicle charging, and reducing plastic use.
• Future focus: Believes that integrating people with technology will remain crucial but reiterated that hospitality industry is still a “people” business. Sustainability and innovation will become increasingly central to procurement strategies.

Jason Kreul, COO of First Hospitality Group:

• Partnerships and technology: Stressed the importance of relying on supply procurement partners and brands like IHG and Entegra to guide purchasing decisions using their technologies. Emphasized the need for detailed and diligent decision-making, especially in managing rising product costs.
• Cost challenges: Discussed ongoing product cost increases, noting that they often outpace revenue growth, requiring creativity in menu engineering, portion sizes, and other operational areas to manage costs without compromising the guest experience.
• Shipping delays and lead times: Highlighted the importance of staying ahead of shipping delays, especially for FF&E products, given global political challenges. •
• Sustainability and equity: Identified sustainability, diversity, and equity in purchasing decisions as growing priorities, alongside managing inflation and other market pressures.

Contact us to speak with an Entegra representative about using the power of group purchasing and data-driven insights for your lodging operation.

August 27, 2024