An interview with Ted Carroll on what hoteliers should look for in a quality hospitality purchasing company
February 26, 2022
The Carroll Adams Group was recently featured in a Hotel Business Shoptalk supplement where President Ted Carroll answered questions on the topic of quality hospitality purchasing. The following is an excerpt from the February 2018 issue.
What are some characteristics of a quality purchasing company?
Aside from a company’s overall experience and their purchasing power and volume, the most important characteristic are the employees of that company. Quality purchasing companies recognize that FF&E and OS&E purchasing is heavily dependent on project management. Anyone can write a PO but what happens before and after that PO and determines the success of a project. At Carroll/Adams, our employees study project management at a major university and take the CAPM exam through the Project Management Institute. As a result, we apply the 13 principles of project management into all our projects. Any quality purchasing company should as well.
What should hoteliers look for when selecting a purchasing company?
Hoteliers should first look at a purchasing company’s experience related to their specific project. For example, a purchasing agent that is focused on upscale and luxury may not be the best fit for a limited service/economy project and vice versa. They should also understand whether the company operates as a fiduciary agent only or a reseller. Lastly, hoteliers should look at a purchasing company’s network of global sourcing and vendor base as those relationships are instrumental in delivering successful projects.
How can hoteliers determine if a purchasing company will be able to handle the volume, changing expectations and tight schedules?
Past project performance will tell all. Look for repeat customers as they are a true test of a purchasing company’s ability to consistently complete projects on time and on budget.
What else should hoteliers know/consider about purchasing companies in terms of the selection process?
It is important for hoteliers to understand how a company manages their global sourcing. How do they select and manage vendor relationships? Do they invest in visiting factories both in the U.S. and abroad? We have a program where every purchasing employee visits a factory for each major commodity (seating, casegoods lighting etc.). Not only is it important professional development for our teams, it helps us be better prepared for the changing requirements of hotel design. Hoteliers should also look at a company’s purchasing software and project approach, both of which require innovation to add value. And as much as the right technology and approach can result in a more cost-effective business model, it’s still important for clients to remember that with most commodities and services, the low bid does not always mean the best bid.