Managing Suppliers in Hospitality Management

Running head: DIPLOMA OF HOSPITALITY MANAGEMENT
Diploma of hospitality management
(Assessment 2)
Name of student
Name of University
Author note

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DIPLOMA OF HOSPITALITY MANAGEMENT
Table of contents
Part A.........................................................................................................................................3
List of suppliers......................................................................................................................3
Key performance indicators...................................................................................................3
Alternative suppliers...............................................................................................................4
Comparison with existing suppliers’ provisions....................................................................4
Negotiations managed with the suppliers...............................................................................5
Management of relationships with suppliers..........................................................................5
Part B Conducting negotiations.................................................................................................5
Part C Making Formal agreements............................................................................................7
References..................................................................................................................................8

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DIPLOMA OF HOSPITALITY MANAGEMENT
Part A
The Grace Hotel, Australia, being a major established and popular hotel is where I
have been working. To manage successful business functioning, it is essential for managing
three different types of suppliers who supply goods and services along with raw materials and
resources like meat, fruits, vegetables, cleaning services, beverages, insurance, etc. for
ensuring successful business functioning and exceptionally good manufacturing and
production processes too (Chen et al., 2015). The hotel falls under the tourism sector and thus
most of the items include food and beverage items, raw materials and resources required for
the production of food, etc.
List of suppliers
Supplier 1: Food and beverage vendors
Products or services provided: the vendors mainly deliver the finished goods, i.e., the
raw materials like vegetables, fruits, meats to the hotel and thus they are considered as major
sources of the supply chain. These are essential for preparing the food items that the clients
require and so consistency of quality for the resources is essential to meet the quality
standards and cater the tastes of people properly.
Supplier 2: Cleaning services suppliers
Products or services provided: These kinds of suppliers are affiliate merchants who
supply cleaning materials, blankets and laundry services. Ferguson et al. (2016) opines that
they are linked with the hotel and for driving the traffic level, they present their products
through banner ads all throughout the affiliates’ network, thus will allow the company to pay
them for delivering the goods at the right time for serving the clients at the hotel efficiently.
Supplier 3: Drop shippers

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DIPLOMA OF HOSPITALITY MANAGEMENT
Products or services provided: Drop shippers are considered as major suppliers
because they supply the products and services directly to the customers once they have made
purchases from the hotel. It is a cost effective way, though considering the fact that they have
direct connection with the hotel and are liable to provide necessary things that the customers
need. The drop shippers include suppliers like event planners who manage the events at
hotels celebrating the guests’ birthday, wedding ceremony and during other auspicious
occasions.
Key performance indicators
The key performance indicators required to supply the products and services from
each of the suppliers include quality of products and services prepared and provided to the
guests cording to the supplies made available to the hotel by the suppliers. On the other hand,
Annison, (2017) is of the view that the quality of food made and guest satisfaction are
considered as key performance indicators based on the supplies made by the food and
beverage vendors.
The clean and fresh laundry and clothing items along with room decoration materials
are positive signs that the laundry services are provided properly and the cleanliness has been
maintained as well.
The drop shippers, when delivered the products and services directly to the clients,
were checked whether those have been delivered timely or not. Thus, the timely delivery of
products and services to the clients is considered as a major performance indicator here.
Alternative suppliers
The manufacturers are alternatives to vendors who are responsible for researching,
developing and producing the finished goods, i.e., they are associated with the management