Increased Control Over Incoming Goods Can Save Hotel Chains Millions!
In the hotel, restaurant, and staff restaurant industries, large quantities of food products are ordered every single day. It is therefore not uncommon for discrepancies to occasionally arise between what is ordered and what is actually delivered. However, it has become evident that these discrepancies are more frequent and significant than many had assumed, and more and more businesses are now recognizing the need for better control over the incoming flow of goods. A pilot project involving the procurement system Millum shows that the right digital measures not only provide better oversight but can also lead to savings worth millions.
Digital Procurement System Streamlines Goods Receipt and Deviation Handling
The need for better control over incoming goods has long been recognized in the food service industry. However, achieving this control has proven challenging. Many have assumed that discrepancies are minor, and that detailed control would cost more than the value of the discrepancies identified—especially as the processes are often manual and time-consuming.
After conducting random checks, several industry players have discovered that the discrepancies between what suppliers claim to deliver and what is actually delivered are greater than expected. These include issues with brands, pricing, and damaged goods that could have been credited or replaced. As a result, many are now abandoning analog routines in favor of digital solutions. One available solution is the Millum procurement system. With Millum, purchasing, goods receipt, and deviation handling all happen electronically, and thus much more efficiently. The result is improved oversight, fewer errors, and significant savings—both in time and cost.
Millions Saved Through Electronic Goods Receipt and Deviation Handling
It goes without saying that better control over delivery discrepancies can lead to substantial savings—especially for hotels and restaurants that make large purchases every day. Still, the results from a pilot project involving some of Millum’s procurement clients in the hotel industry were eye-opening.
Through the project, participants began using Millum’s functions for electronic goods receipt and deviation registration. The result was a significant increase in both claims and credits—far beyond what they had anticipated. The pilot projects collectively achieved a 4.13% increase in the rate of claims and a 0.69% increase in the credit rate.
For companies with purchases in the hundreds of millions, this means that enhanced control through digital processes can lead to multimillion savings. The pilot project thus confirms that delaying the digitalization of goods receipt and deviation handling costs far more than implementing effective solutions right away.
