Hospitality Group - Strategic Sourcing
We standardised the spirits range across 150 venues and led the end to end strategic sourcing of the category
Situation
Our client was a large hospitality group operating over 150 venues in Australia. They had experienced inconsistent offerings and costs across its sites due to rapid growth through acquisitions. The primary focus was on the range of spirits offered and the associated costs, particularly on the "first pour" spirits used in cocktails and mixed drinks. There was a significant opportunity to reduce costs and establish consistency across all venues.
Our Approach
To address the issue, we implemented a comprehensive approach to standardise spirits and streamline costs across the entire group. The following steps were taken
1. Detailed Review
We conducted a thorough assessment of all spirits used across every venue. This review allowed us to gain insights into the current state and categorise the spirits based on their characteristics and usage.
2. Range Consolidation
We worked with venue managers and the procurement team to review the existing usage and develop a tiered range of spirits that covered the requirements of all locations.
3. Request for Proposal (RFP)
We developed an RFP covering the standardised range for all venues. By leveraging the group's combined volume, we were able to negotiate improved pricing with suppliers. This initiative ensured cost savings while maintaining the desired quality standards.
Results
Our client was able to quickly understand their sustainability obligations and risks and to develop a plan to significantly reduce their impact on the environment. We were also able to educate a broad section of the business on sustainability management and to integrate sustainability into the management team’s strategic planning processes.