From Paper to Platform: Future-Proof Your Procurement Team With Digital Transformation
Procurement's Digital Transformation
In an eye-opening survey by PwC, global procurement professionals have spoken when it comes to their digital transformation initiatives. By 2025, procurement departments have an average target of 72% digitalisation, with efficiency, transparency, traceability, and cost savings as some of their main drivers. Procure-to-Pay (P2P) has also benefited the most from the digital transformation of any procurement process, ahead of areas like spend analysis and supplier management. This may be because recent reports cite that digital procurement can reduce processing costs by up to 50% and increase efficiency by 60%.
Industry and environmental challenges
Slow adopters in hospitality should take note, especially considering the impact of industry-specific challenges like labour shortages. Legacy procurement systems overwhelm workers with manual tasks while reducing visibility, making purchasing cycles even longer. Larger hotel chains are notorious for siloed goals, data, and communication between procurement and other operations, creating even more friction points.
There’s also the challenge of navigating price volatility, supply disruptions, and seasonality, which can make it difficult for hospitality procurement to optimise spend and adhere to budgets. Adding greater complexity to this environment is evolving guest expectations. Hotel procurement must be able to adapt quickly to customer demands, especially those surrounding social and environmental responsibility, as well as more personalised and experiential offerings.
Staying competitive and saving costs
These factors point to increased pressure to streamline procurement processes through digital transformation, freeing up personnel to focus on higher-value tasks. By adopting solutions like cloud computing, artificial intelligence (AI), and automation, hotels can gain more control, efficiency, and agility in their purchasing cycles. This is key to staying competitive and realising cost savings, even in an uncertain economy.
There’s also the challenge of navigating price volatility, supply disruptions, and seasonality, which can make it difficult for hospitality procurement to optimise spend and adhere to budgets. Adding greater complexity to this environment is evolving guest expectations. Hotel procurement must be able to adapt quickly to customer demands, especially those surrounding social and environmental responsibility, as well as more personalised and experiential offerings.
Are you future-ready?
While “digital transformation” has become an industry buzzword, there are specific ways that emerging technologies can enhance the function of hotel procurement. Processes like purchase order creation, invoicing, and supplier selection can be fully automated, eliminating manual tasks while shortening the procurement cycle. Workers can focus on more complex and value-generating responsibilities, like fostering relationships with strategic suppliers.
Benefits of digital procurement include:
- Faster and more efficient procurement process
- Reduced costs and improved performance
- Elimination of unnecessary tasks
- User-friendly applications
- Increased user satisfaction
- Quick returns on investment
- Improved adherence to rules and increased flexibility
- 24/7 insight into procurement operations
- Proactive risk management in the supply chain
- Data-backed decision support
- High capacity for excellent service delivery
There are many avenues to procurement digitalisation, but moving P2P software to the cloud is a must for any hotel aiming to future-proof its purchasing strategy. When hosted in the cloud, P2P centralises operations and communication in one place, making it easier for procurement teams to collaborate both internally and externally.
Supplier portals allow for real-time information and document sharing with vendors, supporting improved supplier relationship management. Cross-department information, such as financial metrics, can also be securely shared. This not only minimises information silos but also helps align procurement with the hotel’s broader goals and roadmap.
Leveraging AI and data analytics
What’s more, P2P software can leverage tools like AI and data analytics to improve efficiency and help procurement make more strategic decisions. These insights allow for greater spend visibility, helping hoteliers reduce risk and realise cost-saving opportunities. For example, data analytics can quickly and accurately:
- Identify supplier performance and critical suppliers
- Predict market and consumer trends
- Gauge inventory demands
- Detect fraud, risk, or maverick spend
Social and environmental responsibility
An advanced procurement platform can also help hotels meet targets when it comes to social and environmental responsibility. Rather than searching for and comparing vendors manually, P2P systems can use advanced filters to find sustainable and diverse-owned suppliers. Hotels can also more confidently document their purchasing practices, which is beneficial for environmental, social, and governance (ESG) reporting and compliance with other mandates. It’s also an effective way to address changing guest values, which are increasingly concerned with responsible sourcing and ethical practices in the companies they purchase from.
Maximise your investment with a P2P system created by hoteliers, for hoteliers
By digitally transforming the procurement process, hoteliers can make more cost-effective purchasing decisions, streamline the procurement cycle, facilitate stronger vendor relationships, and improve procurement efficiency and collaboration. These outcomes are all crucial for staying competitive and resilient, even in an unfavourable economy or hiring market. Hotels that want to adapt quickly to consumer expectations—especially those concerned with sustainability and transparency—will also benefit from more agile, tech-driven purchasing cycles.
Adopting a cloud-based P2P system effectively achieves these results, helping hotels unlock sophisticated capabilities like AI.
However, not all procurement solutions are created equal.
By using software designed specifically for hospitality applications, hoteliers can ensure that digital transformation investments address their unique challenges and deliver a significant ROI over the long term.
Transforming your hotel procurement with FutureLog
This is the guiding principle behind FutureLog, a digital procurement platform built by procurement strategists with 25+ years of experience in supporting digital transformation initiatives for some of the world’s leading hospitality organisations.
FutureLog uses a centralised, cloud-based approach to fundamentally transform hotel procurement, promoting streamlined communication and connectivity between all P2P stakeholders. It’s a smart investment that can help your purchasing team deliver greater value—not just within the procurement function itself, but for the entire organisation.
Contact FutureLog today to discuss how we can help you to future-proof your procurement team with digital transformation.
OUR APP: Procure-to-pay while on the go!
From placing orders and managing recipes to approving invoices and viewing reports, with FutureLog’s native mobile app you’ll have all the power and automation of our P2P web solutions conveniently at your fingertips. Whether you’re online or offline, you can stay in control.
