The Louvre Hotels Group has approximately 1400 hotels, and having so many around the world meant that getting maximum efficiency and value from purchases across the group was a real challenge.
Most of the Group’s hoteliers had disparate procurement solutions so the company decided to be more strategic with its purchasing and provide each hotelier with access to one procurement platform. This was to encourage purchasing from approved suppliers, at best prices, while also providing visibility of what was being spent.
Laurent George, Procurement IT Manager at Louvre Hotels Group, commented, “Our relationship with Proactis started seven years ago, but it was still a big challenge for us to select the right platform. We selected Proactis as they were able to prove that they had the ability to understand and, when needed, adapt their processes and tools for our benefit. This was something very important to us.”
Proactis worked with the Group to set up a marketplace for the 1400 hotels around the world. Hotel managers can now obtain better prices and service using approved suppliers, while the central procurement department has access to better knowledge of what the hotels are using. It is now a much more strategic function.
Most of the hoteliers in the group are individually managed or franchised hotels so the option of getting better prices using approved suppliers using Proactis, is a huge incentive. Also, Louvre Hotel set up agreements to encourage hoteliers to further use the platform, such as cash-back from suppliers.
The hoteliers around the Group are using the system every day, not only for food and beverage, but for everything provided in a hotel. The result is approximately 90% of recurring purchase are going through the Proactis platform.
Overall, the Group is able to get much better knowledge of what’s being used – information that can be leveraged to negotiate. It’s a real win-win situation.
Hear how from Laurent George, Procurement IT Manager at Louvre Hotels Group about how they have set up a marketplace for the group of 1400 hotels around the world.
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